The American analytical company Armanino reports that BTC and ETH for $19 billion are placed on the Kraken exchange, including 2.0 ETH frozen in Ethereum staking for $3.5 billion.
Technology consulting company Armanino during the audit
limited only by checking the availability of BTC and ETH. Basically, we are not talking about the exchange’s own reserves, but about the deposits of its clients. Jeremy Welch, Chief Product Officer of Kraken, said that the exchange plans to conduct an annual public confirmation of the presence of cryptocurrency deposits.
“Safety and transparency for our customers has always been at the heart of our corporate culture and at the heart of our practices and operations. Regular checks of Proof of Reserves prove that customer safety is a top priority for Kraken.”
The results of the report will be posted on the Armanino blog. The Kraken Exchange is implementing auditing standards to allow clients to verify that their BTC and ETH balances are backed by real assets held in the platform’s wallets. Any client can independently
check your balance by comparing the selected pieces of data with the Merkle root. Noah Buxton, head of blockchain research and development at Armanino, believes that auditing cryptocurrencies is a great way to explore the blockchain.
“We offer Proof of Reserves because we are passionate about the industry and believe it is the future of finance and capital markets. With this audit, we are taking the best historical practices of certified audit firms and applying them in new ways that are incredibly exciting.”
The exchange clarifies that the audit will only reflect the current state of the supported assets at the time of the audit. Kraken admitted that it is looking to mitigate some of the shortcomings of Proof of Reserves checks. To do this, the platform engages reputable independent third-party companies to review reserves and conduct audits on a regular and transparent basis.
Kraken’s desire to show its reliability to users and regulators is well founded. In September 2021, the U.S. Commodity Futures Trading Commission (CFTC) fined the Kraken exchange $1.25 million for non-registration and margin trading in cryptocurrencies. In November, due to regulatory harassment, the marketplace Kraken closed XMR trading to UK citizens. The UK Advertising Standards Authority banned Kraken ads in December due to a lack of warnings about the risks of cryptocurrencies.
Source: Bits

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