Crypto exchange OKX released its second proof-of-reserves report

    24 Dec 2022

    Crypto exchange OKX published its second proof-of-reserves report, a month after its first, in a continuing effort among crypto exchanges to provide evidence they are handling customer funds safely following the collapse of FTX. Meanwhile, the proof-of-reserves method used, following the collapse of FTX has been criticized by the SEC.

    In a statement, OKX said it will publish more than 23,000 of its addresses around the 22nd of each month in a push for increased transparency and trust.

    Users can now view and download the old and new reserve ratios and assess the exchange’s health and the safety of their assets.

    On Dec. 20, the second report showed a Bitcoin reserve ratio of 101% between OKX wallets of 113,754 BTC and a user balance of 112,192 BTC. This is a slight decrease since the November report, which showed a 102% ratio.

    The Ether (ETH) reserves ratio has increased since last month, from 102% to 103%, while Tether (USDT) remained at 101%.

    “Publishing PoR results on a monthly basis strengthens our commitment to lead the industry when it comes to transparency and trust,” Haider Rafique, OKX Chief Marketing Officer, said in the release. “At OKX, we believe that PoR should be verifiable via open source tools so that users can self-verify the balances and ownership of our reserve addresses.”

    Recently, Paul Munter, the acting chief accountant in The US Securities and Exchange Commission (SEC), warned investors to be wary of crypto companies’ proofs-of-reserves.

    Meanwhile, accounting firm Mazars’ decision to temporarily cease all efforts for crypto exchanges. Before, Mazars faced critics for reports not providing sufficient information.

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