Crypto.com shared the proof of reserve checked by audit firm Mazars. The list includes 8 altcoins which include Dogecoin and Shiba Inu.
Crypto.com releases altcoin reserves
The crypto exchange, under the control of audit firm Mazars Group, has verified the altcoins in its wallets. On December 9, Crypto.com CEO Kris Marszalek released audited Proof of Reserve that allows users to verify that their crypto is fully supported (1:1).
As promised, our audited Proof of Reserves.
Mazars Group, a reputable audit firm, confirmed that our on-chain reserves exceed customer liabilities for all in-scope assets and that we have full control over the wallets.
Users can now verify 1:1 backing cryptographically. https://t.co/rc9rDJGp9d
— Kris | Crypto.com (@kris) December 9, 2022
Mazars Group reports that Crypto.com is receiving client funds at a 1:1 ratio, based on data as of December 7, 2022. Below are the results of major cryptocurrencies and reserve ratios:
Crypto.com got a passing grade from the same auditor as Binance
According to the statement made on Friday, Crypto.com has successfully passed the audit of Mazars Group. This news comes after rival exchange Binance released a similar report from the same auditor on Wednesday proving its reserves. Similar to Binance, Mazars compared assets held at on-chain addresses on Crypto.com to customer balances on Dec.
However, the report was not an official audit. Instead, it’s “a matching exercise based on information provided about the on-chain addresses of client funds and a client database of client balances,” according to Francine McKenna, lecturer in financial accounting at The Wharton School at the University of Pennsylvania. The report shows that Crypto.com controls their funds more than 100%.
Crypto.com CEO Kris Marszalek said in his statements on the subject:
Providing Audited Evidence of Reserves is an important step for the entire industry to increase transparency and initiate the process of restoring trust.
Centralized crypto exchanges under pressure after FTX collapse
As you follow on Kriptokoin.com, FTX, one of the largest centralized exchanges in the market, announced its bankruptcy on November 11. However, linked altcoins like FTT, SOL, and SRM are in free fall. New reports estimate that there are around $1 billion in client funds currently stuck in the exchange. The stock market’s bankruptcy in just a week did not give unannounced users a chance to make a move. The first move to restore investor distrust was the Proof of Reserve audit that Binance brought up.
Currently, all centralized exchanges, including Crypto.com, expect their reserves to be checked by an auditor. Gate.io, KuCoin, etc. all exchanges made public their proof of reserve shortly after the FTX crash. But the fact that exchanges borrow funds through subsidiaries to publish proof of reserve has again brought the principle of transparency into question. On November 13, Crypto.com came to the fore with 2885k Ethereum, which it sent to Gate.io prior to the proof of reserve. Later, the exchange managers claimed that this transfer was “accidental”.
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