Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco
The fall of major crypto ecosystems – such as FTX and Terra (LUNA) – this year has underscored the importance of transparency around the true reserves held by crypto exchanges and companies. Amid the continuing Fear, Uncertainty and Doubt (FUD) in the crypto space, crypto exchange Bitfinex has revealed its proof of reserves to the general public.
Over the past few days, major crypto exchanges including Binance, OKX, Kucoin, and Crypto.com have pledged to share their proof of reserve to regain investor confidence. Speaking of speaking, Bitfinex CTO Paolo Ardoino shared the list of top Bitfinex wallets, last updated on November 11th.
As noted above, Ardoino shared Bitfinex’s Proof of Reserves on GitHub, in which it listed a total of 135 cold and hot wallet addresses. Saving users the trouble of browsing through addresses, it listed some of the company’s large holdings, which included 204338.17967717 BTC and 1225600 ETH among the top holders.
Evidence of reserves for @bitfinex
Here is the list of the main Bitfinex walletshttps://t.co/TaS7Vy9qfP
– 204338.17967717 BTC (among major bitcoin holders)
– 2018.5 L-BTC (Liquid)
– ~1000 BTC on LN ⚡️
– 1225600 ETH (among major Ethereum holders)
—Paolo Ardoino (@paoloardoino) November 11, 2022
Bitfinex developed an open source library called Antani in June 2018, which aimed to provide transparency around proof of credit, custody, and off-chain delegated proof of vote. Although overlooked in the past, Ardoino confirmed Bitfinex’s plans to relaunch the system that would allow users to check their balances without compromising privacy.
Antani’s white paper suggests that users will be able to cryptographically verify their balances, allowing Bitfinex users to confirm the existence of their funds and eliminating the risk of disaggregation.
Although the revelation was warmly welcomed by the community, members pointed out that the data is incomplete as the information excludes Bitfinex liability figures.
Related: OKX and Kucoin say proof of reserves will be ready in a month
Due to massive outflows from crypto exchanges amid the FTX bloodbath, hardware-based cryptocurrency wallet provider Ledger suffered a temporary server outage.
“After the FTX earthquake, there was a massive exodus of exchanges towards Ledger security and self-sovereignty solutions”, explained the CTO of Ledger Charles Guillemet while revealing that the systems were of operational again shortly thereafter.