Exchange Solvency Audits

Exchange solvency audits are comprehensive examinations of a centralized exchange's financial health to determine its ability to meet all customer obligations. These audits go beyond simple proof of reserves by looking at the exchange's broader financial operations, debt levels, and internal controls.

They are intended to provide an independent assessment of whether the exchange is truly solvent and capable of operating safely. Given the history of exchange collapses, these audits are critical for user protection and market integrity.

They often involve deep dives into custodial practices, cold storage management, and operational security. While challenging to perform in the opaque world of crypto, they are becoming an expected standard for reputable platforms.

They provide a high-level assurance that is distinct from technical code audits.