As the shell-shocked crypto sector continues to reckon with the shrapnels of FTX’s implosion, more exchanges have been attempting to prove their reserves can withstand the types of bank runs that dragged Sam Bankman-Fried’s bankrupt company into ruin.
Singapore-based digital asset exchange Crypto.com is the latest on that list.
[adinserter block="1"]The company released audited proof of reserves on Friday that indicates customers’ crypto assets are backed 1:1 on the platform. The international firm Mazars Group conducted the audit.
Says the exchange,
“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 as of Dec 7th.”
Top crypto exchange Binance released its Bitcoin (BTC) proof of reserves in late November, and Coinbase publicized its king crypto reserves earlier that month.
Crypto.com had faced public headwinds of its own in recent months amid the enduring digital asset bear winter. In June, CEO Kris Marszalek said on Twitter that the exchange had plans to lay off 260 people, or about 5% of the company’s workforce.
Last month, Crypto.com caught the attention of digital asset sleuths after transferring about 285,000 Ethereum (ETH), worth over $347 million at the time, to fellow exchange Gate.io, before being returned.
Marszalek clarified that the transaction was a mistake.
“It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage. New process and features were implemented to prevent this from reoccurring.”
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