Is Proof of Reserves Important in Crypto? Why Transparency Matters

When FTX collapsed in November 2022, it didn't just wipe out billions in customer funds — it exposed how easy it was for a major crypto exchange to operate without ever proving it held what users deposited. That single failure made proof of reserves one of the most discussed and least understood concepts in crypto. The question was no longer theoretical: do exchanges actually hold your money? And how would anyone know if they didn't?