cryptocurrency companies have been publishing audits or socalled proofofreserve reports to gain investor confidence on the heels of the ftx collapse but the us securities and exchange commission sec says investors should take those reports with a grain of salt “investors should not place too much confidence in the mere fact a company says it’s got a proofofreserves from an audit firm paul munter the acting chief accountant for the sec told the wall street journal see also ftx disputes ownership of 450m robinhood stock seeks resolution in us bankruptcy court once ftx fttusd went bankrupt cryptocurrency exchanges worldwide declared that they would issue transparency reports to calm worried investors these cryptographic data structures called merkle tree proofofreserves allow customers to verify the stability of their holdings on exchanges while still maintaining privacy munter says audit companies and investors alike should report troublesome fact patterns to the sec if they are discovered binance bnbusd the biggest cryptocurrency exchange by trading volume recently released a report on its proofofreserves but later withdrew it after the auditing firm it hired mazars announced it would no longer be working with crypto companies once mazars quit binance set out to hire another audit company so far the big four auditing firms deloitte ey kpmg and pwc has been unwilling to conduct proof of reserves for the company binance claims next defi hardliner resigns from sec post after reports of his being friendly with sbf