Grayscale Refuses To Publish Proof-of-Reverse

In order to demonstrate the underlying assets of its digital currency offerings, Grayscale Investments has declined to disclose on-chain proof of reserves or wallet addresses, claiming security concerns.

Grayscale provided details on the security and storage of its cryptocurrency assets, stating that all of the digital currency that underpins its investment products is kept in Coinbase’s custody service but refraining from providing wallet addresses.

The company continued that they realize the previous point, in particular, will disappoint some, but panic induced by others is not a good enough excuse to violate intricate security systems that have protected our clients’ funds for years.

Alesia Haas, the CFO of Coinbase, and Aaron Schnarch, the CEO of Coinbase Custody, co-signed a letter that Grayscale shared that outlined its holdings by investment product, reaffirmed that the assets are secure, that each product has its own on-chain addresses.

The action comes as pressure on the cryptocurrency industry to implement proof of reserves grows in the aftermath of FTX’s liquidity problems and eventual bankruptcy. The call was made by Binance CEO Changpeng Zhao shortly after the collapse of FTX.

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