The international audit firm Mazars released a report on the reserves of the cryptocurrency platform Crypto.com.
https://t.co/vCNztABJoG releases Proof of Reserves audited results.
Mazars Group compared the assets held in on-chain addresses proven to be controlled by https://t.co/vCNztABJoG with customer balances through an auditor-overseen live query of a production database as of Dec 7. pic.twitter.com/sXgvIe4ZMV
— Crypto.com (@cryptocom) December 9, 2022
On December 7, Mazars compared assets held at addresses controlled by Crypto.com with customer balances. The funds of users are secured by corresponding asset volumes, the platform’s representatives emphasised.
«Proof-of-Reserves — an important step for the industry as a whole toward increasing transparency and beginning the process of restoring trust. Crypto.com is fully committed to providing clients worldwide with safe, reliable and interoperable means of interacting with digital currencies», — said Kris Marsalek, CEO of the company.
In late November Binance announced its own Proof-of-Reserves feature. It allows Bitcoin holders to verify that their funds on the platform are backed by corresponding asset volumes. It is expected that the solution will be expanded to other cryptocurrencies in the future.
Kraken founder Jesse Powell criticised the exchange’s initiative. In his view, the tool does not prove that it holds more bitcoins than its obligations to customers.
The Binance team used the Merkle tree to consolidate wallet data. According to Ethereum founder Vitalik Buterin, the best results would be achieved by the use of zk-SNARKs.
Earlier in November, amid the FTX collapse, Binance disclosed information about its own cryptocurrency reserves. Following its example, a number of other platforms, including Huobi, Bitfinex and Bybit, did likewise.
Earlier, Mazars will conduct a reserve audit of the KuCoin Bitcoin exchange, providing detailed information on asset backing, funds and obligations.
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