Toobit is one of the most popular international cryptocurrency exchanges, and it has just announced the publication of its most recent Proof of Reserves report, which was independently verified by Hacken.
Over 100% Collateral Ratio
The assessment conducted by Hacken confirms that the exchange is maintaining a collateral ratio of more than 100% across all in-scope digital assets. These include BTC, ETH, USDT, and USDC.
This audit confirms that there’s a safe 1:1+ backing for every trader deposit. The findings also verify that there is a reserve surplus that ensures all trader liabilities are fully over-collateralized.
Additionally, the verification process validated the individual balances of more than 640,000 accounts. This was achieved by cross-referencing loads of internal data against legal documentation, as well as against official statements from third-party institutional custodians to guarantee the highest level of accuracy.
Report Mechanics
To deliver full transparency, Hacken used a multi-stage methodology that was focused on three key stages. First, the auditors performed a Proof of Liabilities. To do so, they verified the total balances of more than 600,000 liability holders to make sure that there was an accurate representation of client deposits.
The second stage was Asset Verification. During this, auditors compared the total reserve balances against the client liability report to verify whether they covered them in full. Last but not least, the process included Operational Oversight, aiming to review information flow and custodial reporting, which ensures all data remains authentic and unaltered.
In conjunction with the audit results, Toobit has launched an upgraded Proof of Reserves page, which moves beyond static reporting to a dynamic transparency model. This hub is designed to ensure that traders are able to monitor live reserve ratios for major tokens and access historical audit data through a user-friendly and accessible interface.
Merkle Tree Technology
A critical component and part of this portal is the integration of Merkle Tree technology. By consolidating trader balances into a singular and secure Merkle root hash, the crypto exchange is able to offer a transparent and tamper-proof method for everyone to verify that their specific account balance was actually included in the audit.
This cryptographic proof is designed to ensure accountability while also maintaining privacy for all traders.
It’s important to note that the full audit report is readily available for public review. The detailed documentation regarding the audit scope, methodology, and technical findings can be found on the official website of Hacken.
With all of the above said, it’s crucial to understand that cryptocurrency exchanges have entered a maturation phase, which is largely driven by independent verification.
Industry leaders maintain reserve coverage ratios between 124% and 125%, far exceeding the 100% safety benchmark. Moreover, as frameworks such as MiCA intensify supervision, long-term operational stability is defined by “compliance by design,” integrating Proof of Reserves and transparent disclosures into core infrastructure.
Be the first to comment