Connect with us

Binance

Proof-Of-Reserves Concept Gains Traction As Major Crypto Exchanges Provide Wallet Lists And Promise Full Audits

Published

on

Proof-Of-Reserves Concept Gains Traction As Major Crypto Exchanges Provide Wallet Lists And Promise Full Audits

When it was first discovered that FTX might be insolvent, a large slew of crypto exchange executives said that they aimed to provide proof-of-reserves audits. While exchanges like Binance and Crypto.com have provided wallet addresses tied to company wallets, blockchain analytics firm Nansen has detailed the company is in the midst of creating a display of crypto exchange proof-of-reserves.

Proof-of-Reserves Concept Pushes Proof-of-Solvency to the Forefront of Crypto Conversations

Three days ago, amid the chaos surrounding FTX, a group of crypto exchange executives detailed that they planned to provide proof-of-reserves via a Merkle tree and full audits. Following the discussions, Binance disclosed the company’s hot and cold wallet addresses and Crypto.com’s CEO Kris Marszalek shared his firm’s addresses.

The blockchain analytics firm Nansen has gotten involved and the company is building a proof-of-reserves dashboard to display exchange reserves. “We are working with exchanges to display proof-of-reserves on [Nansen] for everyone to track their token holdings and transactions,” Nansen detailed on Nov. 11.

Advertisement
Nic Carter is pleased to see proof-of-reserves enthusiasm, saying it’s one silver lining to the FTX collapse.

Nansen shared a current list of exchange portfolios and said that it would update the thread when more exchanges joined. So far, the thread includes exchanges such as Binance, Crypto.com, Okx, Kucoin, and Deribit. Bitfinex CTO Paolo Ardoino has also shared Bitfinex’s reserve list as well, alongside a Github repo that hosts the trading platform’s addresses.

“Bitfinex also developed in the past an open-source library called Antani,” Ardoino added. “Proof of Solvency, Custody and Off-chain Delegated Proof of Vote. We plan to revive it and have a way for users to cryptographically verify their balances respecting their privacy.”

In addition to Crypto.com, Okx, Kucoin, Binance, Bitfinex, and Deribit, the crypto exchange Bybit promises to release proof-of-reserves. Cake Defi has also provided a compiled list of reserves as well. Reports further note that Huobi and Poloniex have plans to share proof-of-reserves.

Exchanges listed on Nic Carter’s proof-of-reserves list or “Wall of Fame,” include Kraken, Bitmex, Nexo, Coinfloor, HBTC, Gate.io, and Ledn. Coinfloor, HBTC, Gate.io, and Ledn’s reserve assessments are older than Kraken and Bitmex’s. Nic Carter’s proof-of-reserves list says Nexo provides daily attestations.

Tags in this story

Binance, Binance CEO, BitFinex, BitMex, Bybit, Coinfloor, Crypto.com, Crypto.com’s CEO, deribit, full audits, gate.io, HBTC, Huobi, Kraken, Kris Marszalek, KuCoin, ledn, Nexo, nic carter, Okx, Poloniex, Proof of Reserves, Proof-of-Reserves Concept, Proof-of-Solvency, Wall of Fame

Advertisement

What do you think about all the crypto exchanges providing proof-of-reserves lists and promising audits and attestations in the near future? Let us know your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

Binance

Third party auditor confirms Binance Bitcoin reserve is over collateralized

Published

on

Third party auditor confirms Binance Bitcoin reserve is over collateralized

Third party auditor confirms Binance Bitcoin reserve is over collateralized Oluwapelumi Adejumo · 2 hours ago · 1 min read

The financial auditor Mazars focused on Binance users’ Bitcoin holdings across several blockchains

1 min read

Updated: December 7, 2022 at 3:05 pm

Advertisement

Cover art/illustration via CryptoSlate

Binance’s Bitcoin (BTC) reserves collateralization is in excess of 100% as of Nov. 22, when a snapshot of its total liabilities and reserves was taken, according to financial auditor Mazars.

As part of #Binance’s user fund transparency work and Proof of Reserves updates, we’re working with digital assets experts at global financial audit, tax and advisory firm, @Mazars_SA.

The first report from Mazars about Binance’s $BTC Proof of Reserves has been published today.

— Binance (@binance) December 7, 2022

To arrive at this result, the auditor considered in-scope assets lent through margin and loan service offerings that are collateralized by out-of-scope assets.

Advertisement

The firm focused on Binance’s users’ Bitcoin holdings across several blockchains like the Bitcoin network, Ethereum (ETH), and Binance-backed blockchain networks (BNB Chain and Binance Smart Chain).

Mazars wrote:

“At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities.”

Its users can also independently confirm that their assets were included in the audit by pasting their Merkle hash into the appropriate box on the page.

The crypto exchange revealed that the proof-of-reserves for other tokens would be released soon.

Previously, Binance revealed that its customer net balance was 575,742.4228 BTC as of Nov. 11, while its on-chain reserves were 582,485.9302 BTC.

Advertisement

Binance CEO Changpeng Zhao tweeted on Nov. 28 that the exchange had moved over $2 billion worth of BTC as part of its reserve audit efforts.

This is part of the Proof-of-Reserve Audit. The auditor require us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j

— CZ 🔶 Binance (@cz_binance) November 28, 2022

Its previous proof of reserves was criticized by Kraken’s Jesse Powell for not including liabilities.

Read Our Latest Market Report

Advertisement
Continue Reading

Australia

This Crypto Exchange Terminates Half Of Its Employees Amid Bear Market

Published

on

By

This Crypto Exchange Terminates Half Of Its Employees Amid Bear Market

The crypto world has had its fair share of drama as the bear market bites down on the entire landscape. In addition, global inflation has also caused most companies to resize their organizational structure.

Crypto businesses are now planning for effective cost-management strategies to prevent a collapse. However, the fear in the market for most crypto users is high since trusted firms have collapsed.

In light of recent events, Australian cryptocurrency exchange Swyftx has shown 90 of its employees the exit door. It represents a layoff of around 40% of the entire workforce – a significant number.

Advertisement

Swyftx CEO Alex Harper said the company is well-positioned to handle the blowout of the FTX storm on the crypto world.

He believes the crypto market will continue to decline in 2023. This is the reason behind the massive decrease in the workforce.

Layoffs Are Common In Crypto Exchanges

Top cryptocurrency exchanges are sizing down their teams to cut costs and prevent wearing out. Other factors have prolonged the current bear market, and this seems to be the only route to stay afloat.

Coinbase – US-based crypto giant laid off around 18% of its staff. Huobi followed suit – downsizing its staff by 30%. Popular exchange Gemini laid off 10% of its workforce in June, then recruited over 60 new people in July.

Other exchanges that include CryptCorn, BitMEX, and Bybit – reduced their numerical strength. Binance, on the other hand, was one of the few exchanges that expanded operations during the current bearish phase.

Advertisement

Who’s Next?

Alex Harper, the Swyftx CEO, broke the news of the layoffs in a letter addressed to employees. He referred to the staff as “90 talented friends and employees”.

He also distanced Swyftx from any association with the bankrupt exchange FTX. However, he also noted that Swyftx is not immune to the effects of such an event on the crypto market.

Harper believes that sizing down a percentage of the workforce will help the organization survive the chilly crypto winter that has claimed many victims.

According to Harper, Swyftx is one of the top crypto trading organizations; in Australia. He also stated that they are well-positioned to weather the ongoing storm in the crypto market.

Crypto market trades sideways on the chart | Source: Crypto Total Market Cap on TradingView.com

All affected employees were promised severance pay within seven days to cushion the effects. Also, they will have access to an employee stock ownership plan (ESOP) for the tenure with additional six months.

Advertisement

The exchange will also provide them with job search support and employee assistance program (EAP) services. Unfortunately, the FTX crash continues with its devasting fallout, with some crypto exchanges filing for bankruptcy.

Featured Image From Pixabay, Charts From Tradingview.com

Sarah

Sarah is a journalist who continues to share her passion for writing through her writing in DeFi, FinTech, and Cybersecurity.

Advertisement

Continue Reading

aBNB

BNB Chain-Based Defi Protocol Ankr Suffers Major Exploit

Published

on

BNB Chain-Based Defi Protocol Ankr Suffers Major Exploit

Decentralized Web3 infrastructure provider Ankr has become the latest victim of a hacking attack targeting the defi space. The perpetrators who hit the platform were able to mint and steal a massive amount of tokens in a multimillion-dollar exploit.

Defi Protocol Ankr Hit by Unlimited Mint Bug Exploit Worth Millions

Ankr, a decentralized finance (defi) protocol based on Binance’s BNB Chain, has been exploited by a hacker who apparently used an unlimited minting bug. On-chain analysts broke the news on social media and the attack, which occurred on Dec. 1, was confirmed by Ankr.

On Friday, the Web3 infrastructure provider admitted on Twitter that its aBNB token had been exploited and announced it’s working with exchanges to suspend trading. In a follow-up tweet, it also insisted that all underlying assets on Ankr Staking are safe and infrastructure services unaffected.

Advertisement

Our aBNB token has been exploited, and we are currently working with exchanges to immediately halt trading.

— Ankr (@ankr) December 2, 2022

Initial reports by blockchain security company Peckshield revealed the unknown attacker had been able to mint and dispose of approximately 10 trillion aBNB. It also found that some of the stolen funds had been transferred to the Tornado Cash mixer. A portion was bridged through Celer and Debridgegate to ethereum.

On-chain analysis firm Lookonchain said the exploiter minted 20 trillion tokens and dumped them on Pancakeswap, obtaining at least $5 million in the stablecoin USDC. The price of the Ankr reward-bearing staked BNB (aBNBc) has since collapsed from over $300 to a little over $1.50, at the time of writing.

Peckshield explained that a smart contract for the aBNBc token had an unlimited mint bug which the hacker took advantage of. Another report suggested the attacker had managed to gain access to the Ankr deployer key.

Advertisement

Binance Freezes $3 Million Worth Of Moved Funds

BNB Chain confirmed it was aware of the attack and has blacklisted the exploiter. Binance founder and CEO Changpeng Zhao tweeted that a developer private key was hacked and the hacker used it to update the smart contract. The exchange has frozen about $3 million of funds moved to its platform.

Possible hacks on Ankr and Hay. Initial analysis is developer private key was hacked, and the hacker updated the smart contract to a more malicious one. Binance paused withdrawals a few hrs ago. Also froze about $3m that hackers move to our CEX.

— CZ 🔶 Binance (@cz_binance) December 2, 2022

Meanwhile, the BNB Chain-based destablecoin hay, that CZ referred to in his tweet, has lost its $1 peg, also as a result of an apparent exploit which was confirmed by the team of Helio Protocol. The token is currently trading at a little over $0.65.

The attacks come in a year of numerous security exploits targeting defi and crypto platforms. According to blockchain forensics firm Chainalysis, the resulting losses in 2022 amount to $3 billion. In early October, BNB Chain was temporarily paused following a hack that cost close to $600 million.

Tags in this story

aBNB, aBNBc, Ankr, Attack, Binance, bnb, BNB Chain, bug, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, CZ, decentralized finance, DeFi, Defi protocol, Exchange, Exploit, Hacker, Hackers, hacking attack, hay, Helio, minting, Token, Tokens

Advertisement

What are your thoughts on the latest exploit in the defi space? Share them in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

Top posts

Assessing what’s next for Yearn Finance (YFI) as we gear up to close Q4 Assessing what’s next for Yearn Finance (YFI) as we gear up to close Q4
Altcoins9 hours ago

Assessing what’s next for Yearn Finance (YFI) as we gear up to close Q4

YFI suffers a bearish divergence that indicates a decline in buying momentum. Sellers take control of the YFI market during...

CryptoSlate Wrapped Daily: Hopes for Celsius withdrawals to reopen, Do Kwon questions SBF involvement in LUNA crash CryptoSlate Wrapped Daily: Hopes for Celsius withdrawals to reopen, Do Kwon questions SBF involvement in LUNA crash
Wrapped11 hours ago

CryptoSlate Wrapped Daily: Hopes for Celsius withdrawals to reopen, Do Kwon questions SBF involvement in LUNA crash

CryptoSlate Wrapped Daily: Hopes for Celsius withdrawals to reopen, Do Kwon questions SBF involvement in LUNA crash Liam ‘Akiba’ Wright...

Uniswap NFT volume declines by a great margin, but here’s the catch Uniswap NFT volume declines by a great margin, but here’s the catch
Altcoins11 hours ago

Uniswap NFT volume declines by a great margin, but here’s the catch

Uniswap witnessed a decline in NFT volume lately. This decline affected other areas of the DEX, including the count of...

Huobi predicts crypto market bottom in early 2023 Huobi predicts crypto market bottom in early 2023
Analysis11 hours ago

Huobi predicts crypto market bottom in early 2023

Huobi predicts crypto market bottom in early 2023 Christian Nwobodo · 15 mins ago · 2 min read According to...

Forex Trading in Portugal Forex Trading in Portugal
Uncategorized11 hours ago

Forex Trading in Portugal

European traders also have massive potential for gains when trading forex. If you’re a trader living in Portugal and thinking...

Is Bitcoin Bottom In? This On-Chain Condition Hasn’t Been Met Yet Is Bitcoin Bottom In? This On-Chain Condition Hasn’t Been Met Yet
Bitcoin12 hours ago

Is Bitcoin Bottom In? This On-Chain Condition Hasn’t Been Met Yet

A Bitcoin on-chain metric still hasn’t formed the same condition as in the previous bottom, suggesting that the current low...

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all
Bankruptcy12 hours ago

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all Soumen Datta · 2 hours ago ·...

Simply Business Insurance Review Simply Business Insurance Review
Uncategorized12 hours ago

Simply Business Insurance Review

Simply Business Insurance Ratings at a Glance Product Offerings Simply Business Customer Service Simply Business Claims Support Simply Business Pricing...

Best Cheap Seasonal Motorcycle Insurance Best Cheap Seasonal Motorcycle Insurance
Uncategorized12 hours ago

Best Cheap Seasonal Motorcycle Insurance

All riders will agree that there is nothing like hitting the open road on your motorcycle. It is an indescribable...

Hiscox Insurance Review Hiscox Insurance Review
Uncategorized12 hours ago

Hiscox Insurance Review

If you own a small business, you likely want to do all you can to ensure that it is protected...

Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure
Exchanges12 hours ago

Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure

Binance Labs leads funding round for GoPlus Security to advance web3 security infrastructure Josh O’Sullivan · 3 hours ago ·...

MATIC Price Battles Under $1 Despite Bullish Signals MATIC Price Battles Under $1 Despite Bullish Signals
Cryptocurrency news13 hours ago

MATIC Price Battles Under $1 Despite Bullish Signals

The Polygon (MATIC) price momentum registered a positive shift over the last 24 hours. The altcoin gained close to 3%....

Layer 2 networks see jump in dApp migration; the reason might surprise you Layer 2 networks see jump in dApp migration; the reason might surprise you
Altcoins13 hours ago

Layer 2 networks see jump in dApp migration; the reason might surprise you

dApps have increased migration to layer 2 networks. Arbitrum continues to lead as the layer 2 network with the highest...

TRON [TRX] is ready for a further rally; investors can profit from this level TRON [TRX] is ready for a further rally; investors can profit from this level
Altcoins14 hours ago

TRON [TRX] is ready for a further rally; investors can profit from this level

TRX was in a bullish market structure. A break of the current support resistance at the 38.2% Fib level ($0.5345)...

Waves down 12% as Upbit issues investment warning Waves down 12% as Upbit issues investment warning
Stablecoins15 hours ago

Waves down 12% as Upbit issues investment warning

Waves down 12% as Upbit issues investment warning Christian Nwobodo · 5 hours ago · 1 min read Upbit has...

Biggest Movers: LTC, ATOM Extend Declines, Hitting 10-Day Lows  Biggest Movers: LTC, ATOM Extend Declines, Hitting 10-Day Lows 
Analysis16 hours ago

Biggest Movers: LTC, ATOM Extend Declines, Hitting 10-Day Lows 

Litecoin fell for a third consecutive session on Thursday, as the token continued to move away from recent highs. Cryptocurrencies...

Bitcoin Whales Dump 20,000 BTC On The Market, Sell Side Strengthens Bitcoin Whales Dump 20,000 BTC On The Market, Sell Side Strengthens
Bitcoin16 hours ago

Bitcoin Whales Dump 20,000 BTC On The Market, Sell Side Strengthens

The Bitcoin price action remains stalled as the cryptocurrency moves in a tight range; uncertainty is king in the current...

Research: Bitcoin, Ethereum derivatives are unwinding Research: Bitcoin, Ethereum derivatives are unwinding
bitcoin futures16 hours ago

Research: Bitcoin, Ethereum derivatives are unwinding

Research: Bitcoin, Ethereum derivatives are unwinding Andjela Radmilac · 6 hours ago · 3 min read Data analyzed by CryptoSlate...

Trending

Free Bitcoin MiningEarn from $50 to $75 daily with just your phone