Crypto.com has released an audited proof of reserves page, showcasing its ability to meet its customers' obligations by having enough cryptocurrency reserves. According to a statement on the exchange's website on December 9, the new page reveals that Crypto.com has more than 100% of the Bitcoin and Ethereum reserves and 102% of the USD Coin reserves needed to process withdrawals.
The audit was conducted by Mazars Group, an international accounting, tax, and audit firm, and was accurate as of December 7. The release of the proof of reserves comes after the cryptocurrency community has been scrutinizing centralized exchanges more closely since the FTX collapse in November. Crypto.com was also affected by the FTX crisis and had to briefly pause withdrawals on the Solana network.
By publishing its proof of reserves, Crypto.com aims to demonstrate that it is a trustworthy cryptocurrency asset manager, capable of processing all withdrawals. According to Kris Marszalek, CEO of Crypto.com, providing an audited proof of reserves is a critical step for the industry to increase transparency and restore trust. Marszalek stated, "Crypto.com is fully committed to providing customers worldwide with a safe and compliant way to engage with digital currencies."
Furthermore, the Crypto.com proof of reserves page enables users to perform a self-audit of their reserves. Users can log into the app and verify the assets they had at the time of the audit and copy the Merkle hash derived from their balances. After obtaining their Merkle hash, users can navigate to a separate auditor page controlled by Mazars, where they can receive detailed proof that their liabilities are part of the exchange's audited larger Merkle tree of liabilities.
The auditor's page uses an open-source program called Silver Sixpence Merkle Tree Generator, ensuring that the results are accurate. If the auditor's page is tampered with to produce false results, any programmer can discover it by running the program in their own development environment.
Overall, the release of the audited proof of reserves is a positive step for Crypto.com as it demonstrates its commitment to transparency and accountability to its customers.