"One potential solution is to demand that exchanges issue periodic proofs that they actually have dominion over assets owed to depositors. These 'Proofs of Reserve' (PoR), if done properly, leverage bitcoin’s neat cryptographic properties and give depositors reasonably sound assurances that the exchange is not misrepresenting their solvency. Such PoR ceremonies purport to prove that deposit-taking institutions have sufficient BTC in reserve to satisfy all liabilities owed to depositors. After a brief period of enthusiasm for the public audits in the wake of Mt. Gox in 2014, today only one exchange routinely carries out these attestations — the London-based Coinfloor."