“There was a balance sheet issue and it became known to many depositors all at once,” Nazarov said. “And because it was a surprise, there was a bank run that led to insolvency.”
But imagine if depositors knew what FTX and Alameda Research’s balance sheets were from the beginning.
Can proof-of-reserves prevent future crypto exchange collapses? by Jacquelyn Melinek originally published on TechCrunch