MEXC, a cryptocurrency exchange, has partnered with the blockchain security company Hacken and now conducts monthly proof-of-reserves (PoR) audits as part of its commitment to greater transparency.
The new program will provide regular third-party audits to ensure that user assets on the platform are always fully backed up. These audits will start in late November and provide third-party verification without MEXC’s prior review or approval, ensuring users receive balanced information.
Hacken’s Independent Verification
Hacken is responsible for the monthly audit procedure, which ensures MEXC’s reserve holdings are protected from tampering. Hacken will look at the exchange’s reserves and user balances for the most important cryptocurrencies. MEXC says its reserve ratios for all major cryptocurrencies remain above 100% at all times.
Users will still be able to use the Merkle tree-based PoR method to check their own balances without giving up their anonymity. This framework lets customers use cryptographic hashes to ensure their assets are included in the total exchange balances.
The Importance of Proof-of-Reserves Since the collapse of FTX in November 2022, proof-of-reserves has become a standard of confidence in the crypto sector. After the FTX event, big centralized exchanges lost approximately $20 billion in user withdrawals as trust in the sector fell.
On November 10, 2022, Binance was the first to announce its reserve numbers. A Merkle tree implementation for Bitcoin followed soon after. Other exchanges, such as OKX, Deribit, and Crypto.com, also added PoR disclosures, but mostly as one-time reports. This led to criticism for not being transparent enough.
Hacken and MEXC: A Brief History
Hacken, founded in 2017, is known for its expertise in blockchain security and compliance. It uses cutting-edge Web3 and AI-based auditing solutions. The company says it has worked with over 1,500 clients, including the European Commission, Binance, the Ethereum Foundation, and MetaMask.
CoinMarketCap says that MEXC, founded in 2018, has more than 40 million users across 170+ countries and is currently the ninth-largest exchange in the world by trading volume, with daily transactions exceeding $3.65 billion.
Industry-Wide Shifts and Ongoing Auditing Trends
Exchanges like Kraken and Bybit have also sought third-party-verified reserve audits. It’s worth noting that Kraken underwent a cryptographic audit in 2022 and that Bybit began collaborating with Hacken for PoR checks in June 2024.
These steps include ensuring the wallet is owned, ensuring debts are paid, and using Merkle tree technology to let users check their balances directly. The move toward regular third-party-validated audits is part of a broader industry effort to win back users’ trust and make crypto platforms more open.
