Crypto.com publishes proof of reserves indicating over 100 percent for BTC and ETH
The new disclosure page enables doubtful users to independently confirm that their assets are included in the report.
The audit was done by Mazars Group, an international audit, tax, and accounting company, and the statement is true as of December 7.
Since FTX’s demise in November, the crypto community has been observing centralised exchanges with a greater degree of scrutiny. Crypto.com also has been affected by the issue, as it was forced to temporarily suspend withdrawals on the Solana network as a result of the repercussions of FTX.
By publishing its proof of reserves, the Crypto.com team intends to demonstrate that it is a trustworthy custodian of users’ money and can be relied upon to complete all withdrawals. The CEO of Crypto.com, Kris Marszalek, described it:
“Providing verified Proof of Reserves is a crucial step for the whole sector to promote openness and begin the process of regaining confidence. […] Crypto.com is totally devoted to providing clients with a safe, secure, and compliant way to interact with digital currencies.”
Due to the fact that some users will not accept the exchange’s reporting of its own assets and liabilities, Crypto.com’s proof-of-reserves website also offers a way for users to self-audit its reserves. Users are able to log in to the application to check the assets they possessed at the time of the audit, as well as copy the Merkle hash created from the balances.
Once the client has obtained their Merkle hash, they may travel to a separate auditor website under the management of Mazars to gain verification that their liabilities are part of the exchange’s audited liabilities’ Merkle tree.
Mazar asserts that their auditor page utilises an implementation of the open-source Silver Sixpence Merkle Tree Generator software. This means that any programmer should be able to determine whether the auditor page was altered to provide misleading results by executing the application in their own development environment.
Crypto.com is the newest exchange to provide proof-of-reserves websites to allay the concerns of cryptocurrency customers. OKX provided proof of reserves on November 23, but its liabilities have not yet been validated by an auditing company. On December 7, Binance published a proof-of-reserve audit for their Bitcoin.