OKX Proof-of-Reserve Report Shows 101% Bitcoin, Tether Reserves

23 December 2022

in DOGE

Reading Time: 3 mins read

Crypto exchange OKX has published its second Proof-of-Reserves report in two months.

The report claims that OKX, which is currently the third-largest crypto exchange by volume, has a Bitcoin and Tether reserve ratio of 101% and an Ethereum reserve ratio of 103% as of December 20.

The Seychelles-based crypto exchange said as part of a “commitment to transparency,” it will publish such reports monthly on approximately the 22nd day of each month going forward.

In addition, OKX has added new features enabling users to view OKX reserve ratios for both new and historical data, as well as to download this data if they choose to self-verify on-chain assets.

This push to verify reserves isn’t unique to OKX. The current bear market has prompted exchanges such as Binance, KuCoin, Crypto.com, and Huobi to release proof-of-reserves audits to boost user confidence.

Still, the reliability of these measures has been called into question by many important voices in the space. The Security and Exchange Commission’s (SEC) acting chief accountant Paul Munter told the Wall Street Journal that it is “warning investors to be very wary of some of the claims that are being made by crypto companies.”

The seasoned auditor added that investors “should not place too much confidence in the mere fact a company says it’s got a proof-of-reserves from an audit firm,” adding that these don’t provide “enough information for an investor to assess whether the company has sufficient assets to cover its liabilities.”

The watchdog’s spokesperson added that if it finds questionable “fact patterns” within these reports, it will refer these to one of its divisions for enforcement.

In addition, the WSJ report indicated that Binance is looking to secure another accounting firm as its auditor, reaching out to what’s known as the “Big Four, which is made up of Deloitte, EY, KPMG, and PwC.

Mazars auditor halts crypto work

The news comes after the accountancy firm Mazars, which had already executed several reserves audits for large crypto firms, declared it is no longer set to work with crypto firms on these.

Binance told Decrypt in a statement: “Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance.”