KuCoin to Conduct Proof-of-Reserve Verification Post FTX Fiasco

KuCoin has joined a growing list of crypto exchanges, that are now getting their proof-of-reserves verified. Documents that demonstrate that a crypto exchange has enough assets to handle all withdrawals in case of an emergency, are called proof-of-reserves. Several crypto firms are getting their account details audited after last month, FTX crypto exchange crashed due to liquidity crunch. The debacle severely impacted the crypto sector, that lost over $200 billion (roughly Rs. 16,36,790 crore) in the following days.

The Singapore-headquartered platform has roped-in Mazars Group (MG), a third-party audit firm, to verify its proof-of-reserves. The move is aimed at regaining customer trust during this ongoing crypto winter and drumming up the business again.

“We place the safety and security of our users’ funds as our topmost priority. Working with Mazars is the next step in our efforts to increase asset visibility for our users, highlighting our commitment to transparency and strengthening industry trust,” CryptoSlate quoted KuCoin CEO Johnny Lyu as saying.

KuCoin will officially post the findings by MG on its website in a few weeks’ time.

Binance crypto exchange, in the last week of November, moved BTC 127,000 worth over $2 billion (roughly Rs. 16,324 crore), into a wallet under its control. At the time, Binance CEO Changpeng Zhao had claimed that the company was getting its proof-of-reserves audited.

From India, Giottus and CoinDCX crypto exchanges also got their account reserves verified.

Vitalik Buterin, the co-founder of Ethereum, has advised members of the crypto community to soldier through the rough times by focussing on the tech, and distancing themselves briefly from the investor circles.

Meanwhile, several crypto firms have announced job cuts in order to keep their respective businesses oiled and running amid the market slowdown.

The global crypto market currently stands at $864 billion (roughly Rs. 70,25,994 crore) after it fell from its last year’s valuation of $3 trillion (roughly Rs. 2,44,97,715 crore) following multiple incidents of hack attacks as well as the collapses of promising crypto projects like Terra and FTX.