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  1. The recent FTX collapse has prompted many crypto exchanges and investment platforms to share “Proof of Reserves”- a public-facing attestation as to a custodial service’s reserves alongside a record of its liabilities (i.e., user balances). However, crypto investment firm Grayscale recently tweeted that it won't show proof of reserves due to “security concerns.” It did however explain the legal structure through which it holds customer assets along with details of the relevant custodial services it employs. Grayscale’s tweet reads, “Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting procedure. We know the preceding point, in particular, will be a disappointment to some, but panic sparked by others is not a good enough reason to circumvent complex security arrangements that have kept our investors’ assets safe for years.” https://www.theblock.co/post/188606/grayscale-wont-share-proof-of-reserves-citing-security-concerns
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