Proof of reserves refers to an audit process where a third party validates that a cryptocurrency exchange, wallet service, or other custodian truly holds the crypto assets they claim to hold on behalf of their users. This helps establish transparency and builds trust that the service is solvent and not engaging in fractional reserve practices.

The proof of reserves process typically involves the auditor reviewing the custodian's wallets and transaction records to confirm that their holdings match the total assets they are obligated to their users. Advanced cryptographic techniques may be used to maintain user privacy while still enabling verification.

Conducting regular proof of reserves audits by reputable firms is considered an important operational practice for custodians, especially in the wake of issues like the FTX collapse that exposed improper fund management. However, I don't have insight into any specific company's actual reserve status or audit results. I can only explain the concept at a high level based on my training. Let me know if you need any clarification or have additional questions!