Crypto Sector’s Reserve Reports Can’t Be Trusted, Says U.S. Audit Watchdog

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These verifications of assets take a simple snapshot and “do not address the crypto entity’s liabilities, the rights and obligations of the digital asset holders, or whether the assets have been borrowed by the crypto entity to make it appear they have sufficient collateral,” according to the PCAOB. And such documents definitely don’t prove anything about a company’s internal controls or governance, the board added.

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