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Crypto.com Releases Proof-of-Reserves Information, Demonstrating Complete Client Asset Backing

Proof-of-reserves information from auditing company Mazars Group demonstrated cryptocurrency exchange Crypto.com clients' assets were fully backed one-to-one, according to a statement made by the firm on Friday.

This came after competing exchange Binance on Wednesday produced a comparable report from the same auditor that appeared to prove its reserves.

On Dec. 7, Mazars performed a similar comparison to Binance between customer balances and assets held at on-chain addresses on Crypto.com.

Also Read: Federal Judge Issues Subpoenas To 3AC Leadership As Controversy Over Terraform Dump Intensifies 

It demonstrated more than 100% of in-scope assets were under Crypto.com's ownership.

According to Crypto.com CEO Kris Marszalek, "Providing audited Proof-of-Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust.”

Crypto Exchanges Scurrying To Provide Transparency

Following the fall of FTX, a once-reliable cryptocurrency exchange that is currently being investigated for fraud, centralized crypto exchanges have been under pressure to offer more transparency.

Earlier this week, a report by Mazars proved Binance (CRYPTO: BNB) had 101% collateralization of its Bitcoin (CRYPTO: BTC) holdings, meaning the crypto exchange had more than enough Bitcoin to cover customer deposits.

As of Nov. 22 at midnight UTC, the largest cryptocurrency exchange in the world had a 101% collateralization ratio of 575,742 Bitcoin in net customer deposits.

Read Next: FTX Co-Founder Sam Bankman-Fried To Testify In Front Of US House Financial Committee

Photo: Emre Akkoyun via Shutterstock

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