Does proof of reserves prove an exchange has no loans or liabilities outside customer balances?

No. An asset snapshot or customer-liability proof does not necessarily capture corporate borrowings, pledged collateral, subsidiaries, legal claims or liquidity problems.

The answer

No. An asset snapshot or customer-liability proof does not necessarily capture corporate borrowings, pledged collateral, subsidiaries, legal claims or liquidity problems.

What to do next

Read the precise scope and date of the reserve report and look for audited financial statements and customer-liability coverage.

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Is a wallet-address screenshot sufficient proof of reserves?

No. Showing addresses without demonstrating control, scope and liabilities is not sufficient to establish solvency.

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