Bybit expands proof-of-reserves audit

An independently verifiable audit confirmed that Bybit’s cryptocurrency reserves range from 100% to 124% of what is owed to customers.

Cryptocurrency exchange Bybit has expanded its proof-of-reserves audit to include 32 different cryptocurrencies, according to a Dec. 20 press release. This audit verifies that Bybit’s reserves match or exceed the assets held by customers on the exchange.

The audit affirmed that Bybit’s cryptocurrency reserves range from 100% to 124% of the balance owed to customers. This indicates that the exchange holds sufficient collateral to back all assets under management.

Bybit utilizes a multi-tier wallet system comprising cold, warm, and hot wallets to securely store digital assets. The exchange has partnered with cryptocurrency custodians Fireblocks and Copper to reinforce asset protection protocols.

The expanded proof-of-reserves aligns with Bybit’s focus on transparency within the cryptocurrency sector. The company currently holds the top trust score on CoinGecko’s exchange benchmark and received an “AA rating” from the 2023 CCData report.

Bybit joins a number of cryptocurrency firms providing proof-of-reserves assessments to assure customers that holdings are not compromised or fractionally reserved. As the broader digital asset industry continues emphasizing responsible policies and self-regulation, transparent proof of solvency remains crucial for maintaining trust.

Still, it needs to be kept in mind that proof-of-reserves only covers crypto assets and does not consider the traditional assets and liabilities. The proof-of-assets of a crypto firm holding a significant amount of digital assets but being effectively bankrupt due to debt accrued in the traditional financial ecosystem would look completely healthy.