Binance releases new proof of reserves
The world's leading exchange Binance has announced its 14th proof of reserves (PoR).
The latest snapshot on January 1 shows strong growth in user assets, likely bolstering the confidence of investors as well as users in general.
Updated Binance proof of reserves
The data shows a notable increase in holdings of major cryptocurrencies. User Bitcoin assets increased to 575,000, marking a 2.65% increase, equivalent to an additional 14,850 BTC. Similarly, ETH holdings increased by 2.9%, reaching 4 million. Notably, USDT has increased by 4.45%, currently at a significant 16.8 billion.
PoR is important in the cryptocurrency industry, serving as a verifiable guarantee that any exchange has enough reserves to support user assets on a 1:1 basis. , along with other additional reserves. This system is important in ensuring that for every Bitcoin a user deposits, the exchange's reserves will increase accordingly, providing protection against potential financial crises.
It's important to note that these figures do not include Binance's holdings, which the company manages separately. However, Binance has been accused of mixing user funds with company assets.
Due to various legal controversies, 2023 is a challenging year for Binance. In November 2023, it agreed to pay a $4.3 billion fine to settle lawsuits with US regulators. Additionally, co-founder and CEO Changpeng Zhao had to resign after pleading guilty to money laundering charges.
The company is still trying to have the lawsuit from the US Securities and Exchange Commission (SEC) dismissed. Meanwhile, Binance announced it invested $213 million in the compliance program last year.
“We put compliance first. In 2023, we invested $213 million in our compliance program, an increase of 35% over last year ($158 million). We also continue to invest in leading identity verification (KYC) product providers and solutions,” said Binance CEO Richard Teng.
