US Listed Companies Accounting Oversight Board: Encrypted reserve certificates are not audits and cannot provide "meaningful assurance"

The Public Company Accounting Oversight Board (PCAOB) said that crypto exchanges’ proof of reserves reviews are not audits, do not adhere to any particular standard, and that reporting reserves as evidence of a company’s protection from a financial run does not provide “meaningful assurance.” . The PCAOB called these asset verifications a simple snapshot that “does not address the liabilities of the crypto entity, the rights and obligations of digital asset holders, or whether the crypto entity has borrowed assets to make it appear that there is sufficient collateral.”