The Dutch exchange Bitvavo today again clarified the situation with them regarding the security of user funds. According to Bitvavo, customers do not have to lie awake at night because they can lose their money. The exchange even comes with one brand tree proof of reserves with which users can see exactly what Bitvavo holds as a reserve for the cryptocurrencies they have stored at Bitvavo!
Bitvavo and FTX
In fact, all major exchanges have already indicated that they want to demonstrate in a certain way what their reserves consist of. This obviously has everything to do with the demise of crypto exchange ftx. Confidence in exchanges plummeted as a result of this drama.
Earlier we asked in a short interview what the situation was at Bitvavo. For example, did they have exposure to FTX? This was not the case and Bitvavo claims to be in top financial condition. At the time, it was also promised that the exchange would come with proof-of-reserves. Action now seems to be added to the word here.
Bitvavo reserves
In a blog post Bitvavo announces that there is a verifiable brand tree will come out that will allow any user to check Bitvavo’s reserves. In this way, it can be proven in a cryptographic way that Bitvavo actually has customers’ crypto assets at their disposal.
“Although the past few days have been a difficult period for digital assets, Bitvavo appreciates the recent developments in the market regarding transparency and security, and we intend to actively participate in these developments. We are actively working to establish an auditable brand tree where each user can independently verify the coverage of their assets on the Bitvavo platform, to prove cryptographically that we own the assets we claim to own on your behalf.”
In addition, Bitvavo once again confirms that they store user credits with custody services that are also properly insured against unexpected misfortunes. Bitvavo is insured up to a whopping $775 million in total. So it seems that Bitvavo is just perfectly healthy today.