Grayscale, the asset manager running the worlds largest bitcoin fund, said in a statement that it wont share its proof of reserves with customers.
Due to security concerns, we do not make such on-chain wallet information and confirmation data publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure, said a statement Friday.
Following the implosion of FTX and its subsequent bankruptcy proceedings exposing that customer funds were missing, multiple crypto exchanges have jumped to release proof-of-reserve audits in order to assuage investor concerns over the safety of their funds. Others, like Binance, say they soon plan to do so.
Grayscale wrote in a tweet that it realized that failing to disclose a proof of reserves would be a disappointment to some, but added that a panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept its investors assets safe for years.
Poster Comment:
Sort of like buying physical gold and depositing it at the FED!!