Joshua K_ King#79

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How to check if an exchange has proof of reserves?

Proof of reserves is a verification method where an exchange demonstrates that it holds customer assets on-chain to back deposits. Traders can check this by reviewing transparency reports published by the exchange or verifying cryptographic audits performed by third-party firms. Leading exchanges may provide Merkle Tree audits where users can confirm their balances are included. However, not all exchanges provide reliable proof, and some have been caught manipulating audits. The safest approach is to cross-check with blockchain explorers and verify whether reserves match claimed balances. If an exchange cannot provide credible proof, trust should be limited.