It signed a Proof of Reserves audit by contracting with the Mazars Group, the audit firm of Crypto.com, and became the latest cryptocurrency exchange to do so by publishing this data. Thanks to Proof of Reserves, Crypto.com has proven that customers fully support their assets.
According to a blog post published Friday, audit firm, Mazars managed the verification process for Proof of Reserves. At the end of this process, it was determined that the bitcoin reserves on the Crypto.com exchange had 102% collateral. Ethereum had a collateralization rate of 101%, USDC 102%, and USDT 106%.
The audit for Proof of Reserves was performed as specified by the International Auditing and Assurance Standards Board (IAASB). The purpose of this fully independent and third-party audited report was to verify the availability and support of customer balances.
Proof of Reserves is an independent check conducted by third parties to establish the reliability of centralized crypto exchanges. The primary purpose of this control is to ensure that crypto money platforms hold the crypto assets they request on behalf of their customers.
The Proof of Reserves audit was decided to be carried out in mid-November when it was determined that Crypto.com had accidentally sent 320,000 ETH to a wallet linked to Gate.io. Although Crypto.com claimed that all this money was saved, this has seriously affected the platform’s reliability.
Kris Marszalek, CEO of cryptocurrency exchange Crypto.com, said that providing an audited Proof of Reserves is an essential step towards increasing the transparency of the cryptocurrency industry.
Recently, Binance, the world’s largest cryptocurrency exchange, shared its Proof of Reserves report with the public. Mazars backed this report, and it turned out that Binance has 101% of bitcoin reserves.
