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

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

https://t.co/vCNztABJoG publishes audited Proof of Reserves results.

Mazars Group compared assets held in on-chain addresses monitored by https://t.co/vCNztABJoG with customer balances via a live query supervised by an auditor from a production database as of December 7. pic.twitter.com/sXgvIe4ZMV

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

According to the statement, the audit was performed by Mazars Group, an international audit, tax and accounting firm, and is accurate as of December 7, 2022.

The crypto community has been watching centralized exchanges more closely since the collapse of FTX in November. Crypto.com itself was caught up in the crisis, as it had to briefly suspend withdrawals on the Solana network due to the FTX fallout.

By releasing proof of reserves, the Crypto.com team hopes to show that they are good stewards of crypto users’ assets and can be trusted to process all withdrawals. Kris Marszalek, the CEO of Crypto.com, explained it this way:

Providing audited proof of reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust […] Crypto.com is fully committed to providing customers around the world with a safe, secure and compliant way to interact with digital currencies.

Some users may not trust exchanges reporting their own assets and liabilities. So, to silence the skeptics, Crypto.com’s Proof of Reserves page also provides a method for users to self-verify their reserves. Users can log into the app and verify the assets they held at the time of the audit, and they can copy the Merkle hash derived from those balances.

Once the client has obtained their Merkle hash, they can access a separate auditor page under the control of Mazars, where they can receive detailed proof that their liabilities are part of the larger Merkle tree of audited liabilities of scholarships.

Mazar claims that his auditor page runs a version of the open source merkletree-verify program from silversixpence-crypto. This implies that if the listener’s page has been altered in some way to produce false results, any programmer should be able to find out by running the program in their own development environment.

Related: FTX, FTX US and Alameda to File for Chapter 11 Bankruptcy in the US; SBF resigns

Crypto.com is the latest in a series of exchanges offering proof of reserves pages to allay the fears of crypto users. OKX offered its proof of reserves on November 23, although its liabilities have yet to be audited by an auditing firm, and Binance only released its proof of reserves audit for Bitcoin on December 7.

Crypto.com has released a verified proof of reserves page, showing that the exchange has enough crypto assets to secure its debts to customers, according to a Dec. 9 statement on the exchanges’ website. The new page shows that Crypto.com has 102% Bitcoin (BTC), 101% Ethereum (ETH), and 102% USD Coin (USDC) required to process withdrawals.

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