Crypto.com Publishes Proof of Its Reserves
As the cryptocurrency industry continues to deal with the aftermath of FTX’s demise, additional exchanges are striving to demonstrate that their holdings can survive the sorts of credit crunch that brought Sam Bankman-insolvent Fried’s firm to its knees.
The Singapore-headquartered cryptocurrency exchange Crypto.com is the most recent addition to this list. Friday, the business issued certified proof of reserves demonstrating that users’ crypto funds are matched 1:1 on the network. The audit was done by the global company Mazars Group.
According to the crypto exchange, “Mazars Group matched the assets stored at on-chain addresses shown to be owned by Crypto.com with client holdings through a realtime, audited search of a backend data base as of December 7.”
Binance disclosed its Bitcoin (BTC) holdings at the end of November, while Coinbase disclosed its own cryptocurrency holdings earlier in November. In the past few months, Crypto.com encountered its own public challenges within the ongoing digital asset bad market. In June, CEO Kris Marszalek announced on Twitter that 260 employees, or around 5% of the firm’s total, will be let off.
Back in November, Crypto.com drew the curiosity of digital asset detectives by moving around 285,000 Ethereum (ETH), valued more than $347 million at that time, to another exchange, Gate.io, before returning it.
Marszalek said that the operation was an error. “It was meant to be a relocation to a fresh cold storage location, but instead it was delivered to a whitelisted external exchange owned address. Following our collaboration with the Gate team, the cash were refunded to our cold wallet. New procedures and safeguards have been adopted to avoid a recurrence.”