Crypto.com releases proof of reserves conducted by Mazars Group
Crypto.com has released a proof-of-reserves page that allows users to audit its reserves to make sure the Hong Kong-based cryptocurrency exchange platform is solvent. This comes at a time when major crypto plyers are coming under greater scrutiny after the FTX fiasco.
The audit was conducted by Mazars Group, a Paris-based international accounting firm employing more than 44,000 professionals in more than 90 countries. Mazars had previously worked for former United States President Donald Trump’s company and audited reserves of major crypto platforms, including Binance.
In simple terms, proof-of-reserve enables the exchange to verify that it has sufficient fiat and cryptocurrency reserves to back its customers’ balances.
Crypto.com said the varication provides customers with additional transparency on whether their in-scope assets are collateralized, along with details on the exchange’s current reserves and liabilities for its top assets.
“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,” it said.
As of December 7, 2022, Mazars Group compared the assets held in on-chain addresses proven to be controlled by Crypto.com with customer balances through an auditor-overseen live query of a production database.
The attestation was performed under ISRS 4400 as set forth by the International Auditing and Assurance Standards Board (IAASB) used advanced cryptographic procedures to confirm the availability and backing of customer balances.
Crypto.com users can view a snapshot of its holdings and latest reserve ratio on the page below. In addition, the full Crypto.com audit conducted by Mazars can be found here.
“Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust. Crypto.com is fully committed to providing customers around the world a safe, secure, and compliant means of engaging with digital currencies,” said Kris Marszalek, CEO of Crypto.com.
Proof of Reserve hit the headlines in recent weeks as many exchanges have taken steps to increase transparency and trust amongst their users. The collapse of Sam Bankman-Fried’s FTX, which filed for bankruptcy last month, has triggered withdrawal suspensions across associated platforms and beyond. To assure investors, major cryptocurrency exchanges have been publishing evidence of the reserves they hold.