According to a statement published on the exchange’s website on December 9, Crypto.com has published a proof-of-reserves page, showing that it has sufficient crypto assets to cover its responsibilities to consumers. Crypto.com possesses 102% of the Bitcoin, 101% of the Ether, and 102% of the USD Coin required to complete withdrawals.
The research also includes Tether, XRP, Dogecoin, Shiba Inu, Chainlink’s LINK, and Decentraland’s MANA, all of which have reserves of over 100%.
The audit was done by Mazars Group, an international audit, tax, and accounting company, and the statement is accurate as of December 7.
Since FTX’s demise in November, the crypto community has been observing centralised exchanges with greater scrutiny. Crypto.com has also been affected by the issue, as it was forced to temporarily suspend withdrawals on the Solana network due to the repercussions of FTX.
By publishing its proof of reserves, Crypto.com shows that it is a trustworthy custodian of users’ funds and can be relied upon to complete all withdrawals.
According to the CEO of Crypto.com, Kris Marszalek, as some users will not accept the exchange’s reporting of its assets and liabilities, Crypto.com’s proof-of-reserves website also provides a way for users to self-audit its reserves. Users can 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 different 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 implements the open-source Silver Sixpence Merkle Tree Generator program. This implies that any programmer should be able to determine if the auditor page was altered to provide misleading results by executing the application in their developer environment.
Crypto.com is the newest exchange to offer proof-of-reserve websites to alleviate the concerns of crypto users. OKX provided proof of reserves on November 23, an auditing company still needs to validate its liabilities. On December 7, Binance published a proof-of-reserve audit for their Bitcoin.
Tags: Crypto Exchange