- Crypto.com released proof-of-reserves data on 9 December
- Following the FTX debacle, most exchanges have had to reveal their proof-of-reserve exchanges
Singapore-based crypto exchange Crypto.com released its Proof-of-Reserves data on 9 December. The global audit, tax, and advisory firm, Mazars Group, conducted the report. It demonstrated that it had sufficient crypto assets to back its customer liabilities.
Crypto exchanges under pressure to release Proof-of-Reserves
Following the collapse of FTX, which is now being investigated for fraud, cryptocurrency exchanges around the world have been under pressure to provide more transparency. According to the allegations, the Bahamas-based crypto exchange used client funds to make risky investment bets through Alameda Research.
Recall that Alameda Research happens to be a trading firm also founded by ex-FTX CEO Sam Bankman-Fried. Crypto exchanges such as Binance and OKX were also trying to reassure customers that their funds were safe following the FTX debacle last month.
As a result of the fallout from FTX, Crypto.com was forced to temporarily pause withdrawals on the Solana [SOL] network on 9 November.
— The Black Tie Report (@BlackTieReport) November 9, 2022
Understanding that some users may be skeptical of the exchange’s self-assessment, Crypto.com’s Proof-of-Reserves page allowed users to self-audit its reserves through the Mazars app.
Crypto.com not the first exchange to release PoR
Two weeks ago, OKX released its Proof-of-Reserves data. It indicated that OKX had 102% of the BTC and ETH tokens required to handle all withdrawals in these coins. Additionally, it had 101% USDT required to handle all Tether withdrawals.
🚨 Don’t trust, verify → OKX Proof of Reserves (PoR) is LIVE. 🚨
To set a new standard of transparency, risk management and user protection, we’re launching our first PoR.
You can now verify your assets are backed 1:1 on #OKX ⤵️
— OKX (@okx) November 23, 2022
Binance was next, with Mazars Group releasing its Proof-of-Reserves data on 7 December. Binance held over 575,742.42 BTC, and the exchange was 101% collateralized.
Crypto.com CEO Kris Marszalek took to Twitter to emphasize the necessity of sharing proof of reserves. He said,
“Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies… Transparency is more important than ever, and safety and security of users and funds remains the priority. It requires full and collective commitment.”