Crypto Exchanges Struggle to Convince Customers They’re Safe

Moves by cryptocurrency exchanges to reassure markets about their stability are having little effect on jittery users, who keep pulling funds from the venues.

Platforms from Binance to Crypto.com have made full or partial disclosures outlining their assets since FTX.com unraveled last week. Yet clients’ stampede for the exits has persisted, with exchange reserves of Bitcoin, Ether and stablecoins falling sharply, according to data from CryptoQuant.

The problem is many so-called proof of reserves published so far have left out liabilities, haven’t been vetted by outside auditors and don’t provide clarity on which, if any, of the assets exchanges hold ...