Why Proof-of-Reserves Isnt Enough to Trust Crypto Exchanges

What is proof-of-reserves?

At its core, proof-of-reserves is a public demonstration that a custodian holds the assets it claims to hold on behalf of users, typically using cryptographic methods and onchain transparency.

If every crypto exchange can publish a proof-of-reserves (PoR) report, why can withdrawals still be delayed or halted during a crisis?

The truth is that proof-of-reserves is not a trust guarantee. It shows whether verifiable assets exist on a platform at a single point in time, but it…