Digital asset exchange Crypto.com today released a proof of reserves study in support of its ability to cover client balances.
In a Friday statement, the Singapore-based platform said it used international audit, tax and advisory firm Mazars to demonstrate—using “advanced cryptographic procedures”—the availability and backing of customer balances.
Mazars released the study for Crypto.com on Friday. Earlier this week, Mazars also said that Binance, the world’s biggest crypto exchange, held enough Bitcoin needed to cover customer deposits.
“It is now easy for our existing users to verify that Crypto.com has a 1:1 reserve of all customer crypto assets deposited on its platform, and users can confirm the assets in their account are responsibly backed and accessible, both for the Crypto.com App and Crypto.com Exchange,” Crypto.com said Friday.
It added the move was to set the “highest standard for transparency and accountability.” Crypto exchanges like Crypto.com and Binance are trying to reassure customers that funds are safe following the colossal fall of FTX last month.
FTX, once one of the biggest and most famous exchanges, collapsed completely after it became apparent customer balances were not safe.
The Bahamas-based exchange was allegedly using client money to make risky investment bets through Alameda Research—a trading house also founded by ex-FTX boss Sam Bankman-Fried.
Crypto.com is a popular exchange but also offers clients a Visa debit card to spend cryptocurrencies.
Last month, data from blockchain analysis firm Nansen showed the platform was holding 20% of its reserves in the highly speculative “meme coin” Shiba Inu, though it’s likely that this total reflected customer deposits rather than the company’s own treasury.
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Sourced from decrypt.co.
Written by Mat Di Salvo on 2022-12-09 22:02:07.
