MoonXBT Prepares Proof of Reserve Disclosure in Spite of Being Constantly Audited by SERC
MoonXBT, the leading crypto social trading exchange, is preparing to show proof of reserves in the next couple of weeks in an effort to enhance user confidence together with the industry.
“Security and user confidence are two founding stones of the crypto industry,” says Jack, CEO of MoonXBT. According to Jack, MoonXBT is regulated by the Securities and Exchange Regulator of Cambodia (SERC) which means it has enough reserves to meet the SERC requirement and to fulfill customer withdrawals at any time in any amount.
However, it is important to synchronise with the industry to jointly rebuild user confidence. “It seems to have become a consensus for centralised exchange to unveil Merkle Tree proof of reserves. If that’s what’s ought to be done, we are gonna do it as soon as possible,” says Jack.
Proof of reserves, especially the Merkle tree proof of reserve has emerged as a way to showcase asset safety and transparency to prevent contagious fear of users after the liquidity crunch has occurred at FTX, the second largest centralized crypto exchange.
Showing the proof of reserves was first led by Binance which has already shared its wallet balances and says it plans to conduct a proof-of-reserves snapshot “in the next few weeks.” Other exchanges such as Gate.io, KuCoin, Poloniex, Bitget, Huobi, OKX, Deribit, and Bybit have followed.
While preparing the proof of reserve disclosure, MoonXBT has also published a total of 500,000 USDT in special funds for the traders affected by the FTX incident including agents, KOLs, users, etc. Those who have suffered losses exceeding a certain amount at FTX can receive the help fund from MoonXBT every month for six consecutive months.
MoonXBT has always been vocal about asset safety and has always put the users’ interests first. As a direct partner of the Cambodian government, MoonXBT has been examined thoroughly by the top financial enforcement branch. MoonXBT has met the SERC’s standard of holding reserve and risk management requirements to handle emergency withdrawals or even liquidity crunches.
Moreover, MoonXBT has worked with the industry-leading crypto security company Fireblocks as its asset custodian. Not only does Fireblocks provide a technological solution to provide bank-level security to users’ private keys, but it also oversees MoonXBT’s asset transfers. The platform has never made any “accidentally wrong” transfers to other corporate accounts, nor has it used users’ funds as any form of collateral to conduct DeFi activities.
On top of the above, ever since its founding, MoonXBT has guaranteed smooth daily operations and never halted customer withdrawals for any reason.
According to Jack, regardless of the FTX emergency, MoonXBT always follows strict protocols to ensure the asset safety of the users. “But hopefully showing the proof of reserves can help the users to pick up the confidence sooner,” says Jack.