coindesk.com
Crypto.com released proof-of-reserves data from auditing firm Mazars Group that showed its clients' assets are fully backed one-to-one, according to a statement Friday.
This comes after rival exchange Binance released a similar report from the same auditor seemingly proving its reserves on Wednesday. Similar to Binance, Mazars compared assets held in on-chain addresses on Crypto.com with customer balances on December 7.
However, the report is not an official audit, but rather a "matching exercise based on information provided by the client about on-chain addresses of assets and a client database of customer balances," according to Francine McKenna, lecturer in financial accounting at The Wharton School at the University of Pennsylvania.
It shows that Crypto.com controlled in-scope assets in excess of 100%.
The results of reserve ratio of major assets on Crypto.com. (Source: Crypto.com)
"Providing audited Proof of Reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust,” said Kris Marszalek, CEO of Crypto.com.
Centralized crypto exchanges have been under pressure to provide more transparency in the wake of the collapse of FTX, a once trusted crypto exchange now under investigation for fraud.
UPDATE (Dec. 9, 16:15 UTC): Updated with additional information throughout.