{"id":11135,"date":"2023-08-28T13:01:48","date_gmt":"2023-08-28T17:01:48","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=11135"},"modified":"2023-08-28T13:01:48","modified_gmt":"2023-08-28T17:01:48","slug":"sec-issues-warning-regarding-proof-of-reserves-in-crypto-asset-markets","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/sec-issues-warning-regarding-proof-of-reserves-in-crypto-asset-markets\/","title":{"rendered":"SEC Issues Warning Regarding \u201cProof Of Reserves\u201d in Crypto Asset Markets"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-10372 size-full\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2022\/01\/FiverRecoverysmall.jpg\" alt=\"The SEC Office of Investor Education and Advocacy issued an investor bulletin warning crypto investors about the dangers of trusting audits that don\u2019t follow SEC rules and Public Company Accounting Oversight Board standards.\n\nMany crypto companies and issuers of \u201cstablecoin\u201d have been working to assure investors that their funds are safe by releasing reports called \u201cproof of reserves.\u201d \u00a0These reports are sometimes touted as equivalent to or more accurate than the standard audited financial statements. Companies may also issue a \u201ccalculation\u201d or \u201cvaluation\u201d report with much the same intent. However, the SEC warns that they are not the same thing, and may not be entirely accurate.\n\nThe SEC\u2019s investor bulletin warns investors that these \u201cproof of reserves\u201d \u00a0financial statements may not give a complete picture of the company\u2019s stability. Investors should not rely on these reports as a complete picture of the stability of cryptocurrency in the same fashion as audited financial statements, the SEC says.\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2022\/01\/FiverRecoverysmall.jpg 300w, https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2022\/01\/FiverRecoverysmall-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>The SEC Office of Investor Education and Advocacy <a href=\"https:\/\/www.sec.gov\/oiea\/investor-alerts-and-bulletins\/investors-crypto-asset-markets-should-exercise-caution?utm_medium=email&amp;utm_source=govdelivery\" target=\"_blank\">issued an investor bulletin<\/a> warning crypto investors about the dangers of trusting audits that don\u2019t follow SEC rules and Public Company Accounting Oversight Board standards. <a href=\"https:\/\/www.silverlaw.com\/blog\/sec-issues-warning-regarding-proof-of-reserves-in-crypto-asset-markets\/#more-11135\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC Office of Investor Education and Advocacy issued an investor bulletin warning crypto investors about the dangers of trusting audits that don\u2019t follow SEC rules and Public Company Accounting Oversight Board standards. Continue reading \u203a<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1655],"tags":[],"class_list":["post-11135","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SEC Issues Warning For \u201cProof Of Reserves\u201d In Crypto Markets<\/title>\n<meta name=\"description\" content=\"The SEC Office of Investor Education and Advocacy issued an investor bulletin warning crypto investors about the dangers of certain audits.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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