It's great that we have all of these exchanges showing proof of reserves, but we need to see the liabilities as well. if I have 1 bitcoin, it means nothing if I owe people 50,000 USD.

Title.

This is the conversation nobody is really having. And while the example posted to the title of this thread is oversimplified, it is true. The question is, do we have any kind of industrial-level auditors that can come out and say, "Hey we don't only want to see your reserves, we also want to see your balance book and make sure you guys are above water."

I wouldn't be surprised to see that many of you guys are thinking, "We wouldn't be in this situation now if people just stopped margin trading, leverage trading, and other options." but I hate to break it to you, when i joined my first centralized exchange back in 2019, one of the first things upper management told me and the new people joining was, "We won't make enough money to pay bills by simply offering spot trading and trading crypto-to-crypto trading pairs. You need to come up with an actually unique product that builds an ecosystem or you need to create ultra speculative products to generate profits."

In other words, the spot exchanges you guys are trading on that also offer leverage trading, yeah, those are casinos. Binance is a casino, Kucoin, Huobi, whatever. If it offers margin trading, it's a casino. The only way you can opt out is not to invest in risky options like those, and instead just buy and HODL promising projects.

Now then, is anyone able to step up to the plate and actually audit all the centralized exchanges to make sure their reserves are on-par with their balances?