Crypto.com Crypto Exchange Provides Proof of Reserves After Panic by Investors – Here’s What You Need to Know
Crypto.com has become the latest cryptocurrency exchange to release its Proof of Reserves data from auditing firm Mazars Group, proving that its clients' assets are fully backed one-to-one.
According to a Friday blog post, auditing firm Mazars conducted the verification process, revealing that the exchange's bitcoin reserves have a 102% collateralization ratio, its Ethereum reserves a 101% collateralization ratio, and its USDC and USDT reserves a 102% and 106% collateralization ratio.
"This independent third-party audited report performed under ISRS 4400 as set forth by the International Auditing and Assurance Standards Board (IAASB) used advanced cryptographic procedures to confirm the availability and backing of our customer balances," Crypto.com said.
A Proof of Reserves (PoR) is an independent check conducted on centralized crypto exchanges by third parties. The goal is to make sure those platforms hold the assets they claim on behalf of their clients.
The audit comes as it was revealed in mid-November that Crypto.com mistakenly sent 320,000 ETH to a wallet address linked to Gate.io. While the exchange claims it has recovered the assets, it somehow impacted the credibility of the platform.
“Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust,” said Kris Marszalek, CEO of Crypto.com. “Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies.”
As reported, Binance, the world's largest cryptocurrency exchange, also shared its Proof of Reserves report. Audited by Mazars, the report revealed that Binance's bitcoin reserves have a 101%
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