Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco


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The collapse of major cryptocurrency ecosystems such as FTX and Terra (LUNA) this year has highlighted the importance of transparency regarding the true reserves held by cryptocurrency exchanges and companies. Amid continued fear, uncertainty and doubt (FUD) across the crypto industry, cryptocurrency exchange Bitfinex has released evidence of its reserves to the public.

Over the past few days, major cryptocurrency exchanges such as Binance, OKX, Kucoin and Crypto.com have pledged to share evidence of their reserves to regain investor confidence. Paolo Ardoino, his CTO at Bitfinex, shared a list of his main Bitfinex wallets, updated on November 11th.

GitHub repository containing Bitfinex margins. Source: GitHub

As above, the Arduino share Evidence of reserves on Bitfinex’s GitHub. He listed a total of 135 cold and hot wallet addresses. Instead of users having to look up addresses, he listed some of the company’s significant holdings.

bitfinex evolved An open-source library called Antani in June 2018 aimed to provide transparency around proof of solvency, custody, and proof of off-chain delegated voting. Overlooked in the past, Ardoino has confirmed his Bitfinex plans to revive a system that allows users to check their balances without violating their privacy.

A goal set by Antani, Bitfinex’s open source library.Source: Antani White Paper

Antani’s white paper suggests that users will be able to cryptographically verify their balances, allowing Bitfinex users to verify the existence of their funds and eradicate the risk of de-pegging.

The revelation received a warm reception from the community, but members noted that the data was incomplete as the information excluded figures of Bitfinex’s liability.

Related: OKX, Kucoin says reserve proof will be ready in a month

Ledger, a hardware-based cryptocurrency wallet provider, suffered a temporary server outage as a result of a massive exodus of funds from cryptocurrency exchanges amid the FTX carnage.

“After the FTX earthquake, there has been a massive exodus from exchanges to Ledger’s security and self-sovereignty solutions,” said Ledger CTO Charles Guillemet, revealing that the system was quickly restored.