Bitfinex CTO releases proof of reserves amid FTX bankruptcy fiasco

ByDonald L. Leech

Nov 12, 2022

The downfall of major crypto ecosystems – such as FTX and Terra (LUNA) – this year highlighted 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, committed to sharing 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.

GitHub repository containing proof of Bitfinex reserves. Source: GitHub

As stated above, Ardoino share 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 major holdings, which included 204338.17967717. BTC and 1225600 ETH among the best holders.

BitfinexComment developed an open-source library called Antani in June 2018, which aimed to provide transparency around proof of solvency, custody, and off-chain delegated proof of voting. 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.

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

from Antani white paper suggest 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.