According to Shenzhen TechFlow news, the crypto financial institution Jump Crypto issued a document stating that the current Proof of Solvency launched by the cryptocurrency trading platform has three flaws and vulnerabilities, mainly as follows:
1. From a verifiable perspective, the trading platform may not be able to actually control “those addresses where funds are stored”;
2. From a financial perspective, proof of solvency does not guarantee that the company has actual solvency, because cryptocurrency trading platforms usually hold other assets and liabilities on the balance sheet;
3. From a technical perspective, proof of solvency is not necessarily “plug and play” and trading platforms often choose other more cautious and appropriate methods when executing.
In response to the above problems, Jump Crypto proposes 5 constructive solutions, including:
1. The trading platform actively verifies the financial stability of users;
2. Provide bounty rewards for finding solvency vulnerabilities;
3. Proactively send key certification documents to users;
4. Trading platforms need to generate proof of solvency faster and more frequently;
5. Trading platforms can ask audit companies to find loopholes from the perspective of ordinary users.
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