HTX Proof-of-Reserves Disclosure Exposed Discrepancies in USDS and USDD Balances

HTX's September proof-of-reserves disclosure has raised concerns about the exchange's accounting practices. The disclosure listed USDS and USDD balances at specific Ethereum addresses, but these figures do not match the actual holdings at those addresses.

The discrepancy in USDS holdings was particularly large, with a reported balance of 360,949.90 tokens at block height 25,876,316, while the address held none at that time. The exchange's records show that the address received USDS one day after the proof-of-reserves date, on September 2.

The USDD discrepancy was less severe, with a reported balance of 44,975,772 tokens at block height 25,876,316, but the actual holding was only 44,886,000. This leaves a difference of 89,772 USDD between the reported and recorded balances.

These discrepancies add to concerns about HTX's process for matching assets with liabilities in its proof-of-reserves disclosures. A previous disclosure also listed STEAK-USDC at an address that held none of that token at the stated block height, but it did hold an equivalent amount of sUSDS.