Grayscale: We will not publish data on our reserves

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Investment company Grayscale saidthat its crypto assets are stored in a wallet on the regulated crypto exchange Coinbase and for security reasons the fund will not publicly disclose its assets.

Because Coinbase is already audited periodically as a custodial service, the Grayscale team will not disclose addresses or any information considered confidential:

“Coinbase performs blockchain verification frequently. For security reasons, we do not provide information about wallet, reserves, or other advanced cryptographic accounting procedures."

Grayscale understands the reaction that their reluctance to follow the example of crypto exchanges and report on reserves will cause:

“Our statement will disappoint many, but paniccaused by the fiasco of FTX and other companies is not a valid reason to bypass the sophisticated security measures that have protected the assets of our investors for many years."

Grayscale representatives tried to reassureinvestors, reassuring that the rules applicable to its units make a scenario like the collapse of FTX virtually impossible. The company ensures that each division registers its product legally. That is, the rules governing their crypto trusts prohibit the sale, loan, or other transfer of users' underlying assets.

Recently, the CEO of the Binance exchangestated that disclosure and actual confirmation of the existence of assets or reserves should be mandatory for companies in the crypto industry. Many exchanges supported him, some even did so to the detriment of their reputation.