Kraken CEO On Binance’s Proof of Reserves: “Ignorance or Intentional Misrepresentation”

Crypto CEOs have been very active in showing Proof of Reserves, with J.Powell the latest taking jabs at the transparency of others.

Kraken CEO Calls Out Binance

In a series of blistering tweets on November 25, CEO and Co-Founder of Kraken, Jesse Powell, has called out the validity and accuracy of Binance’s recent reveal of its Proof of Reserves

Binance released its Proof of Reserves a day prior in an effort of transparency. But in short order, Powell didn’t hold back in his sharp critique of the “hand wavey bullshit” he sees from the world’s largest exchange, Binance. 

Powell continued to explain that Proof of Reserves should be coming out from exchanges to see “whether an exchange has more crypto in its custody than it owes to clients.” Binance’s lack of liabilities––or accounts with a negative balance, as Powell notes too––does nothing but mislead consumers and the crypto community. 

The Kraken Co-Founder didn’t stop at Binance, calling out journalists who promote something they don’t understand. It should be noted that your author opined that Binance should show proof of liabilities in a Nov. 22 article on Binance’s public presentation of Bitcoin reserves. 

As noted in the tweet above, Powell defined true proof-of-reserves in a crypto exchange. He called for more vigorous audits that check all liabilities with cryptographic proof of the evidence. 

The CEOs of major centralized crypto exchanges have been embattled publicly for weeks since the fall of FTX. Binance CEO Changpeng Zhao (CZ) recently called out Coinbase’s reserves which promoted CEO Brian Armstrong to issue a strong response. Dueling AMAs also occurred from CZ and’s CEO, Kris Marszalek. 

The recent bank run on FTX was notably started by a tweet thread from Binance’s CZ as well. 

What is Binance:

Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.

Where to find Binance:

Website | Twitter | Discord | Telegram |

What is Kraken:

Kraken is a United States–based cryptocurrency exchange and bank founded in 2011. It is a digital exchange looking to be the go-to exchange that caters to traders of any level of crypto knowledge. Kraken is one of the oldest Bitcoin exchanges and supports more than 120 different coins to buy, sell, and trade with competitive exchange fees. 

Where to find Kraken:

Website | Twitter | LinkedIn | 

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