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This can be seen as a variation of the general risk that goes like: Site proves balances, a moment later site takes backing funds to vegas. The proof shows fun
by nullc 13y ago
This can be seen as a variation of the general risk that goes like: Site proves balances, a moment later site takes backing funds to vegas. The proof shows funds, but it doesn't show what they'll do a moment later.
It's still a massive step forward from the current conditions, but doesn't mean that people shouldn't avoid putting their funds in third party hands.
- michaelt 13y agoPresumably the exchange reports the bitcoin addresses for their wallets alongside the proof, so you can look at the blockchain and confirm the balances match. So you know your bitcoins haven't been taken to vegas yet. Of course, this doesn't provide any security for deposits in conventional currencies, and doesn't stop the exchange just taking the money and running.