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

cointelegraph.com:

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

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

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

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

By releasing a 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:

Some users may not trust the exchange’s reporting of its own assets and liabilities. So to silence the skeptics, Crypto.com’s proof of reserves page also provides a method for users to self-audit its reserves. Users can log in to the app and verify the assets they held at the moment the audit was done, and they can copy the Merkle hash derived from these balances.

Once the customer obtains their Merkle hash, they can navigate to a separate auditor page under the control of Mazars, where they can receive a detailed proof that their liabilities are part of the larger Merkle tree of the exchange’s audited liabilities.

Mazar