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Crypto Industry Takes Action Post FTX; WonderFi Releases Proof Of Reserves For Bitbuy, Coinberry

Published 14/11/2022, 20:19
© Reuters.  Crypto Industry Takes Action Post FTX; WonderFi Releases Proof Of Reserves For Bitbuy, Coinberry
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Benzinga - Technology company Wonderfi Technologies Inc (OTC: WONDF) on Monday announced its "Proof of Reserves & Platform Due Diligence Audit" for its operating subsidiaries Bitbuy Technologies Inc. and Coinberry Limited, even as significant cryptocurrency exchanges scramble to disclose their wallet details and vow audits amid the FTX drama.

The audit was conducted by Blockchain Intelligence Group for both Bitbuy and Coinberry, which are registered crypto asset trading platforms with the Ontario Securities Commission.

Also read: Why FTX's Collapse Is The Crypto Equivalent Of The 2008 Lehman Brothers Crisis

What Did The Audit Find?

According to WonderFi, Bitbuy and Coinberry meet and exceed their own mandates of requiring 95% and 80% of all customer assets to be in cold storage, respectively.

Also, all Bitbuy customer balances are accounted for, with 97.16% of all customer funds in a third-party insured custodian account with BitGo Trust Company, Inc. Bitbuy's operational hot wallet balances account for the remainder of 2.84% of customer balances.

All Coinberry customer balances are accounted for, with 96.28% of all customer funds in a third-party insured custodian account with Gemini Trust Company, LLC. Coinberry's operational hot wallet balances account for 3.72% of customer balances.

Both Coinberry and Bitbuy were scored as "low-risk" platforms during an operational assessment that reviewed business activities, company registration, KYC/AML policies, and a number of other criteria.

At least nine cryptocurrency exchanges have come forward to provide proof of fund reserves as the market comes to terms with insolvency fears on the heels of FTX’s native token FTT (CRYPTO: FTT) falling off a cliff and leading to the bankruptcy of FTX.

Next: With Bitcoin, Ether And Altcoins Drowning In A Sea Of Blood, Can Investors Hope To Catch A Falling Knife?

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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