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%.

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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.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Inbar is a reporter covering crypto policy and regulation with a focus on Europe. Before The Block, she worked with several publications in Brussels including The Parliament Magazine and Are We Europe. Inbar holds a bachelor's degree in international relations from University College Utrecht and a master's degree in international politics from KU Leuven.

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