Binance claims $63B in reserves, adds 11 PoR tokens

Since the FTX crash, bitcoin exchanges have begun utilizing proof-of-reserves (PoR) to clarify transactions.

Binance has added 11 new tokens to its proof-of-reserves (PoR) report, according to a statement made on March 7.

MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE are among them. As of the most recent update, Binance’s proof-of-reserves system has about $63 billion spread across 24 assets.

Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) are the three biggest assets on the exchange, with $12.7 billion, $7.1 billion, and $16.3 billion in net client balances, respectively.

After the collapse of the cryptocurrency exchange FTX, exchanges have started using the proof-of-reserves (PoR) method to make transactions more clear.

Nevertheless, experts have repeatedly cautioned customers about the methodology’s shortcomings.

They are not disclosable without financial statements accompanying the PoR and include the lack of information on the use of leverage, collateralization, and matching proof of liabilities.

According to Binance, their PoR “uses Merkle trees to add up on-chain data, so customers can be certain that their assets are kept 1:1 in our custody.”

The exchange started using zk-SNARKs in February 2023. Binance said that this would “improve the privacy and security of user data during the verification process.”

It was reported on December 16, 2022, that South African auditor Mazars had withdrawn Binance’s PoR audit from its website and halted providing auditing services for cryptocurrency exchanges.

Previously, on December 7, the company said that Binance’s bitcoin and cross-chain bitcoin assets were “completely collateralized.”

Mazars asserted that their processes were based on “agreed procedures” (AUP) and did not constitute a financial audit. In addition to its restricted scope, the AUP did not explore alternative tokens.