OKX Launches Proof-of-Reserves Page and Self-Audit Tool
- OKX has become one of the first crypto exchanges to release a Proof-of-Reserves page, giving users a greater visibility in its reserves and liabilities.
- Customers can also verify that their assets are backed 1:1 on the platform, and that they have become a “leaf” in the Merkle tree data structure.
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The fall of FTX has spurred crypto exchanges to show proof of their solvency, and OKX has become one of the first to release a Proof-of-Reserves (PoR) page on their platform, the company said in a press release on 23 November.
According to the announcement, the new page will grant users a greater visibility into the exchange’s assets by giving them a brief summary of OKX’s reserves and liabilities. The page also has a feature that allows users to verify that their own assets are backed 1:1 on the platform. OKX’s director of financial markets, Lennix Lai, said in a statement:
“Our new proof of reserves page and self-audit feature give users the ability to verify that their assets are 100% backed. Third-party audits are also being conducted to provide additional reassurance on top of this. We believe that a far greater degree of transparency needs to be brought to our industry to allow us to build back stronger after recent events.”
The new tool features support only for Bitcoin (BTC), Ether (ETH), and Tether (USDT), but OKX noted it is working on adding more assets to the list over time. The latest snapshot on the PoR page indicates that OKX has 102% of BTC, 102% of ETH, and 101% of USDT needed to handle all withdrawals in these assets.
The self-audit tool gives users the ability to login and verify that their assets are backed by reserves based on data provided by the most recent snapshot. For its more doubtful clients, OKX has also provided an explanation on how users can manually check that their assets have become a “leaf” in the Merkle tree data structure, and how to compare their balances to publicly available blockchain data.
The exchange also revealed it will soon be launching an Independent Custodial Wallet service for its institutional and high-net worth clients, which will allow them to secure their assets separately from OKX’s reserves. It will also give them greater control over their assets by allowing them to view and track their wallet balances in real0time, as well as hold the private keys to their funds.
OKX is not the only crypto exchange rushing to release proof of their reserves following the collapse of FTX, which experienced a liquidity crunch on 8 November, and later filed for bankruptcy. In response to the event, OKX, Binance, KuCoin, Gate.io, Bitmex, and Kraken all declared that PoR pages are needed to increase transparency and trust in the market.
- The New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
- Joseph Pimbley, a member of litigation consulting firm PF2 Securities, will try to rebuff testimonies from Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia.
- During his testimony Pimbley will try to establish a timeline for the FTX-Alameda line of credit, and convince the jury it fluctuated between $1 billion and $3 billion between 2021 and 2022.