Crypto exchange Bybit publicly released the addresses of its largest crypto wallets. This came on the heels of FTX’s collapse and calls within the industry for greater transparency. Bybit listed the addresses in a press release.
The crypto market has experienced a crisis as FTX, the world’s second-largest crypto exchange by volume, has been unable to process withdrawals and has filed for bankruptcy. In the wake of this crisis, Binance CEO Changpeng Zhao has advocated for all exchanges to create a proof-of-reserves protocol that will prove to the community their assets are equal to or greater than their liabilities.
Bybit’s release of wallet addresses is not a proof of reserve because it doesn’t provide a Merkle tree of the exchange’s liabilities to customers. However, releasing the wallet addresses is a precondition of creating a proof of reserve later, if Bybit chooses to do so.
