Analysis Crypto by Thebittimes.Com

Claiming that the crypto game is now ‘more fair,’ Kraken founder Jesse Powell adds that there are new threats to the industry’s reputation that continue to emerge. As Binance reached a $4.3 billion settlement agreement with the U.S. Department of Justice and the exchange’s founder Changpeng Zhao agreed to step down as the firm’s CEO, the crypto game feels a “bit more fair today ,” said Kraken Founder Jesse Powell. The game feels a bit more fair today . The last 12 months have answered 2 nagging questions from shareholders: 1. How are they going so fast? 2. How are they getting away with it? "Trust me, any day now…" is only believable for so many years. It's hard to keep faith while… — Jesse Powell (@jespow) November 23, 2023 Powell, who also stepped down as CEO of Kraken in September 2021, says the industry now has to “self-police,” adding that the market “cannot count on timely protection....

According to Powell, a complete proof-of-reserve audit must include the sum of client liabilities, user-verifiable cryptographic proof that each account was included in the sum and signatures proving the custodian’s control over the wallets. Disclaimer: The article has been updated to reflect Binance CEO CZ's response to the concerns raised by  Kraken CEO Jesse Powell. The collapse of the crypto exchange FTX revealed the importance of proof of reserves in avoiding situations involving the misappropriation of users’ funds. While exchanges have proactively started sharing wallet addresses to prove the existence of users’ funds, several entrepreneurs, including Kraken CEO and co-founder Jesse Powell, called the practice “pointless” as exchanges fail to include liabilities. According to Powell, a complete proof-of-reserve audit must include the sum of client liabilities, user-verifiable cryptographic proof that each account was included in the sum and signatures proving the custodian’...