These 2 Exchanges Lead in Bitcoin Reserve Growth Since FTX's 2022 Collapse

The collapse of FTX in November 2022 has highlighted the importance of rigorous asset monitoring within the cryptocurrency industry. This event has prompted a shift towards greater transparency, with exchanges increasingly disclosing their reserves and how they manage user funds.

As of November 6, marking two years since the collapse, only Bitfinex and Binance have reported growth in their Bitcoin reserves among major exchanges.

Exchanges Enhancing Proof-of-Reserve Efforts

A recent report from CryptoQuant reveals that Coinbase is the only major exchange without a public Proof-of-Reserve (PoR) report. In contrast, Binance has implemented robust transparency measures.

• Binance's Transparency: Binance offers Proof-of-Assets (PoA) through publicly accessible on-chain addresses, enabling users to verify assets directly. This includes the ability to confirm that individual account balances are part of the exchange's overall liabilities.

Binance's Bitcoin reserves have grown by 28,000 BTC (5%), reaching a total of 611,000 BTC, despite facing regulatory scrutiny from US authorities in 2023.

Among major exchanges, only Bitfinex and Binance have increased their reserves since the FTX incident, with Binance maintaining a reserve drawdown rate below 16%. Other platforms like OKX, Bybit, and KuCoin publish PoRs monthly, allowing users to audit their reserves for financial stability.

WazirX's First PoR Post-Cyberattack

While PoR reporting has improved transparency, security challenges persist. WazirX recently released its first PoR report following a cyberattack in July, which resulted in a significant decrease in its reserves.

• WazirX's Financial Health: The report indicates that WazirX's total assets, including on-chain funds and holdings with third-party exchanges, are valued at $298.17 million. This decline reflects the company's ongoing restructuring after the cyberattack that led to over $230 million in stolen assets.

WazirX's PoR report is crucial for verifying that its assets adequately cover liabilities, helping users assess the exchange's ability to manage funds responsibly during crises.

The growth of Bitcoin reserves at Bitfinex and Binance highlights a trend towards increased transparency and security in the cryptocurrency sector following the FTX collapse. As exchanges continue to enhance their PoR efforts, user confidence may improve.