Crypto.com releases proof of reserves, showing above 100% for BTC, ETH

Tether (USDT), XRP, Dogecoin (DOGE), Shiba Inu (SHIB), Chainlink (LINK), and Decentraland (MANA) are besides included successful the report, with each of them having reserves of supra 100%.

— Crypto.com (@cryptocom) December 9, 2022

According to the statement, the audit was conducted by Mazars Group, an planetary audit, tax, and accounting firm, and is close arsenic of Dec. 7, 2022.

The crypto assemblage has been watching centralized exchanges much intimately since the collapse of FTX successful November. Crypto.com itself has been caught up successful the crisis, arsenic it concisely had to intermission withdrawals connected the Solana web owed to the fallout from FTX.

By releasing a impervious of reserves, the Crypto.com squad hopes to amusement that they are bully stewards of crypto users’ assets and tin beryllium trusted to process each withdrawals. Kris Marszalek, the CEO of Crypto.com, explained it this way:

“Providing audited Proof of Reserves is an important measurement for the full manufacture to summation transparency and statesman the process of restoring spot [...] Crypto.com is afloat committed to providing customers astir the satellite a safe, secure, and compliant means of engaging with integer currencies.”

Some users whitethorn not spot the exchange’s reporting of its ain assets and liabilities. So to soundlessness the skeptics, Crypto.com’s impervious of reserves leafage besides provides a method for users to self-audit its reserves. Users tin log successful to the app and verify the assets they held astatine the infinitesimal the audit was done, and they tin transcript the Merkle hash derived from these balances.

Once the lawsuit obtains their Merkle hash, they tin navigate to a abstracted auditor leafage nether the power of Mazars, wherever they tin person a elaborate impervious that their liabilities are portion of the larger Merkle histrion of the exchange’s audited liabilities.

Mazar claims that its auditor leafage runs a mentation of the unfastened root merkletree-verify program by silversixpence-crypto. This implies that if the auditor leafage was doctored successful immoderate mode to marque it nutrient mendacious results, immoderate programmer should beryllium capable to observe this by moving the programme successful their ain developer environment.

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Crypto.com is the latest successful a bid of exchanges offering impervious of reserves pages to quell the fears of crypto users. OKX offered its impervious of reserves connected Nov. 23, though its liabilities person not yet been verified by an auditing firm, and Binance released its impervious of reserve audit for Bitcoin lone connected Dec. 7.

Crypto.com has released an audited impervious of reserves page, showing that the speech has capable crypto assets to backmost its liabilities to customers, according to a Dec. 9 connection connected the exchange’s website. The caller leafage shows that Crypto.com has 102% of the Bitcoin (BTC), 101% of the Ethereum (ETH), and 102% of the USD Coin (USDC) needed to process withdrawals.