OKX Proof of Reserve Report Shows 101% Bitcoin and Tether Reserves

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Crypto exchange OKX has released its second proof of reserves report in two months.

The report claims that OKX, which is currently the third-largest crypto exchange by volume, has a Bitcoin and Tether reserve ratio of 101% and an Ethereum reserve ratio of 103% as of December 20.

The Seychelles-based crypto exchange said that as part of a commitment to transparency, it will release these reports monthly around the 22nd day of every month going forward.

Additionally, OKX has added new features allowing users to view OKX reserve ratios for new and historical data, as well as download this data if they choose to verify on-chain assets themselves.

This push to check reservations is not unique to OKX. The current bear market has prompted exchanges such as Binance, KuCoin, Crypto.com and Huobi to release proof of reserves audits to boost user confidence.

Yet the reliability of these measurements has been questioned by many prominent voices in space. Acting chief accountant for the Security and Exchange Commissions (SEC), Paul Munter, told the Wall Street Journal that he is warning investors to beware of some of the claims made by crypto companies.

The seasoned auditor added that investors should not place too much faith in the mere fact that a company claims to have obtained proof of reserves from an auditing firm, adding that these do not provide enough information. so that an investor can assess whether the company has sufficient assets. to cover its liabilities.

The watchdog spokesperson added that if it finds “patterns of questionable fact in these reports, it will refer them to one of its divisions for enforcement.”

Additionally, the WSJ report indicated that Binance was looking to find another accounting firm as its auditor, approaching the so-called Big Four, which are made up of Deloitte, EY, KPMG, and PwC.

Mazars auditor stops cryptography work

The news comes after accounting firm Mazars, which had previously performed several reserve audits for major crypto firms, said it was no longer willing to work with crypto firms on those.

Binance told Decrypt in a statement: Mazars has indicated that it will temporarily suspend work with all of its crypto clients globally, including Crypto.com, KuCoin, and Binance.

A spokesperson for Mazars attributed the decision to concerns about how these reports are understood by the public.”

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