OKX publishes second proof-of-reserves report
Quick Take
- Crypto exchange OKX published its second proof-of-reserves report and promised a monthly update.
- The proof-of-reserves method used following the collapse of FTX has been criticized by the SEC.
Crypto exchange OKX released a second proof-of-reserves report, a month after its first, in a continuing effort among crypto exchanges to provide evidence they are handling customer funds safely following the collapse of FTX.
OKX said it will commit to publishing a report for more than 23,000 of its addresses around the 22nd of each month in a push for increasing transparency and trust, according to a statement shared with The Block.
The second report, dated Dec. 20, showed a bitcoin reserve ratio of 101% between OKX wallets of 113,754 bitcoin ($16,850 at time of writing) and a user balance of 112,192 bitcoin. This is a slight decrease since the November report that showed a 102% ratio.
The ether reserves ratio has increased since last month, from 102% to 103%, while tether remained at 101%.
The U.S. Securities and Exchange Commission's acting chief accountant, Paul Munter, reportedly warned investors to be wary of crypto companies' proofs-of-reserves.
The SEC statement followed accounting firm Mazars’ decision to temporarily cease all efforts for crypto exchanges. Mazars was criticized for reports not providing sufficient information.
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
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