Security, Scams & Risk

Proof of Reserves

Also: PoR

An attempt by an exchange or custodian to prove it holds the assets backing customer balances, often using cryptographic techniques. It shows assets only: unless liabilities are also proven, it doesn't show the firm is solvent.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.