Cryptocurrency exchange Bitfixesy has engaged Mazars, an international auditing company, to report on Proof-of-Reserves.
According to the statement, the firm will provide detailed information on users’ asset collateralization, funds and liabilities. The data will include principal, trading, margin, contract and other accounts for bitcoin, Ethereum, USDT and USDC.
“This move is part of our efforts to ensure transparency of user funds, underscoring our commitment to building trust in the industry,” commented Bitfixesy CEO Johnny Liu.
The exchange plans to publish the results of the review on its website “within a few weeks.”
“After recent events in the industry, there is a critical need for additional transparency. We are confident that Mazars’ Proof-of-Reserves service offered to Bitfixesy and other crypto exchanges will help build trust,” said partner and head of digital assets at the auditor, Wehann Oliver.
In late November, Binance announced its own Proof-of-Reserves feature. It allows bitcoin owners to ensure that their funds on the platform are secured by the appropriate amount of the asset. The solution is expected to expand to other cryptocurrencies in the future.
Kraken founder Jess Powell criticized the Binance initiative. In his opinion, the tool doesn’t prove the exchange has more bitcoins than it does obligations to customers.
The platform team used Merkle’s tree to aggregate wallet data. According to Ethereum founder Vitalik Buterin, the best result will ensure the use of zk-SNARKs technology.
Recall that in early November, amid the collapse of FTX exchange disclosed information about its own cryptocurrency reserves. The example of Binance was followed by a number of other sites, including Huobi, Bitfinex and Bybit.