[2014-08-22] OKCoin Passes Bitcoin Proof of Reserves Audit

[epere]

http://www.cryptocoinsnews.com/news/okcoin-passes-bitcoin-proof-of-reserves-audit/2014/08/22

OKCoin has passed a Proof of Solvency/Proof of Reserves audit conducted by Stefan Thomas. The audit was announced on Weibo yesterday. Fellow Chinese Bitcoin exchanges, Huobi and BTC China, are also expected to release similar announcements soon. Stefan Thomas previously conducted the same Proof of Solvency/Proof of Reserve audits for Bitfinex and Kraken. Similarly, Bitstamp was able to pass an independent test and prove their solvency to BitcoinJ developer Mike Hearn. OKCoin, along with many other industry-leading Bitcoin exchanges around the world

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[Carlton Banks]

Unconvincing test is unconvincing.

This is no different in essence to the way financial audits are conducted in Money 1.0; a human says "we done the test, an' they passed it. Honest! I swear! Alright, pinky swear!".

Not saying they're all bankrupt or some other ridiculous hyperbole, but this is only proof that a man said they passed a solvency test, and not proof that they are actually solvent.

[gmx95]

I agree that it is not as convincing as it seems. Mostly a marketing move designed to make investors feel safer.