Bitget Confirms Reserves with Merkle Tree

To increase the transparency of its work, the Bitget crypto asset exchange has published proof of reserves (Proof-of-Reserves). User assets are protected with a redundancy ratio of at least 1:1.

The Bitget exchange has published a reserves confirmation page that will demonstrate the availability of crypto assets in full under the Proof-of-Reserves (PoR) system and using a Merkle tree. Thus, the exchange confirms that the user assets stored on the platform are protected.

Proof-of-Reserves Page provides users with information about assets, including a Merkle tree, monthly snapshots of the balance of reserve pools, and a demonstration of how the Merkle tree maintains and proves the authenticity and consistency of the data provided by Bitget. Snapshots of the balance of reserve wallets on the platform demonstrate that users’ assets are protected with a reserve ratio of at least 1:1.

Bitget will also launch a Merkle Validator that will allow users to audit their accounts and check the security of funds – users can check the status of their assets (“Merkle Sheet”) in a Merkle tree data structure. Bitget is committed to conducting regular PoR reviews with a third-party auditor to ensure that the balances and status of user assets in reserves remain up to date.

“The release of Proof-of-Reserves and Merkle Tree data provides users with updated information on Bitget’s financial health and better control over assets held on the platform. The cryptocurrency industry is under scrutiny after the scandals and collapses of the largest crypto companies, and the desire of users to invest and store assets on a secure platform has reached a peak. On the Proof-of-Reserves page, Bitget not only demonstrates the comprehensive protection of users, but will continue to advocate for new initiatives aimed at ensuring the secure adoption of cryptocurrencies around the world and creating a stable and reliable environment in the cryptoverse,” said Gracie Chen, Managing Director of Bitget.

Proof of Reserve is an audit procedure that can be verified through cryptographic proofs, public wallet ownership checks, and repeated audits to prove the assets of an exchange. The custodian provides transparency and proof of the existence of reserves in the network, as well as that the total amount of these crypto assets stored and actually at the disposal of the platform exceeds or equals the sum of deposits of these coins of all users.

Bitget stores a hash of each user’s account assets at the end node of the Merkle tree. Each user can verify that their funds are included in the Merkle tree by checking the total amount of user assets stored in the leaf nodes of the Merkle tree. The open source code of the platform that validates its 100% solvency program has also been published on GitHub.

Recall that Bitget recently announced the creation of a $5 million relief fund to support partners and traders affected by the FTX incident, as well as an increase in its own protective fund to $300 million.