2.6 min read
Crypto.com releases its Proof-of-Reserves
Written byEdna Buckley
December 10, 2022
- Crypto.com released proof-of-reserves.
- It used international accounting, tax, and consulting firm Mazars to certify the availability and security of client funds.
- 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.
Digital asset exchange Crypto.com released proof of reserves research proving its ability to support customer balances.
In a statement on Friday, the Singapore-based platform said it used international accounting, tax, and consulting firm Mazars to certify — using “advanced encryption technology” — the availability and security of client funds.
Mazars published the research for Crypto.com on Friday. Earlier this week, Mazars also said that Binance, the world's largest cryptocurrency exchange, has enough bitcoin 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 on Friday.
It added that the move was to set "the highest standards of transparency and accountability". Crypto exchanges such as Crypto.com and Binance are trying to reassure customers that their funds are safe after FTX’s plunge last month.
FTX, once one of the largest and most famous exchanges, collapsed after it was revealed that customer funds were not safe.
The Bahamas-based exchange reportedly used client funds to make high-risk investments through Alameda Research, also a trading firm founded by former FTX CEO Sam Bankman-Fried.
Crypto.com is a popular exchange, but it also offers customers a Visa debit card for spending cryptocurrencies.
Last month, data from blockchain analytics firm Nansen showed the platform held a 20% reserve in the highly speculative "memecoin" Shiba Inu, though that amount likely reflected customer deposits rather than the company own funds.
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