OKX Publishes 2nd Proof-of-Reserves Report, Big Four Firms Refuse to Audit Crypto Exchanges

Exchange okx has recently published its second proof-of-reserves report in two months. the report showed that okx has a bitcoin and tether reserve ratio of 101% and an ethereum reserve ratio of 103% as of december 20. additionally, okx will publish such reports monthly on approximately the 22nd day of each month going forward. other exchanges such as binance, kucoin, crypto.com, and huobi have also released proof-of-reserves audits to boost user confidence.

Security and exchange commission’s (sec) acting chief accountant paul munter warned investors to be wary of claims made by crypto companies in october 2020. binance is looking to secure another accounting firm as its auditor, reaching out to what’s known as the “big four” – deloitte, ey, kpmg, and pwc. 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, crypto.com, kucoin, and binance were clients of mazars.

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. mazars attributed the move to concerns regarding the way these reports are understood by the public. 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. however, these proof-of-reserves audits do not provide “enough information for an investor to assess whether the company has sufficient assets to cover its liabilities.”


By Evey Lovelace

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