MEXC Partners With Hacken for Monthly Proof-of-Reserves Audits to Improve Transparency
- MEXC and blockchain security firm Hacken will publish monthly, independent Proof-of-Reserves (PoR) audits.
- Reports will be fully third-party verified and published without MEXC’s approval.
- MEXC says its reserves are above 100% for major assets.
- Users can verify their balances through a Merkle tree PoR system.
- The crypto industry is moving toward regular PoR reporting due to rising regulation.
- Hacken has worked with major clients like the European Commission, MetaMask, and Binance.
- Proof-of-Reserves has become a key trust benchmark since the FTX collapse.
MEXC has strengthened its partnership with blockchain security company Hacken to launch monthly, independently verified Proof-of-Reserves (PoR) audits. This move marks a major step toward stronger transparency in the crypto exchange industry.
Under the new system, Hacken will conduct monthly audits and publish the reports directly, without MEXC’s review or ability to edit the results. These checks will compare MEXC’s reserves with user balances across all major assets. The first report is expected at the end of November.
MEXC stated that its reserves currently remain above 100% for key cryptocurrencies. To help users independently verify their funds, the exchange already offers a Merkle tree-based PoR system on its dedicated reserves page.
A Merkle tree Proof-of-Reserves allows users to confirm that their assets are included in the exchange’s total holdings by checking cryptographic hashes. This verifies account balances without revealing private account information.
When asked whether monthly third-party PoR audits could become a new industry standard, an MEXC spokesperson said the crypto space is already moving in that direction. They explained that one-time PoR snapshots are no longer enough for users or institutional partners. Increasing regulation across the U.S., Europe, and Asia is also pointing toward mandatory, recurring transparency reports.
About Hacken and MEXC
Hacken is a well-known blockchain security and compliance provider specializing in Web3 auditing and AI-assisted tools. Since 2017, the firm has worked with more than 1,500 clients, including the European Commission, MetaMask, the Ethereum Foundation, and Binance.
MEXC, founded in 2018, serves over 40 million users across more than 170 countries and regions. According to CoinMarketCap, it ranks ninth in global trading volume, handling around $3.65 billion daily.
Proof-of-Reserves Becoming a Standard After FTX
The collapse of FTX in November 2022 caused a major loss of trust in centralized exchanges. Over $20 billion left major platforms in the weeks following the bankruptcy. In response, exchanges rushed to publish PoR data to show they held customers’ assets in full.
Binance was the first major platform to release a reserves report, followed soon after by a Merkle tree version to increase user transparency. OKX, Deribit, and Crypto.com also released PoR reports, but most were one-time snapshots rather than ongoing audits. Many in the community criticized these reports for offering only limited visibility.
Some exchanges, however, took a more rigorous approach. Kraken completed a cryptographic audit by Armanino LLP in 2022, which confirmed its Bitcoin and Ether holdings matched customer balances. Kraken highlighted that this level of transparency exceeded what many traditional financial companies provide.
Bybit has also worked with Hacken since June 2024 to perform regular PoR audits. Hacken’s process includes verifying liabilities, confirming wallet ownership via cryptography, and checking that reserves exceed user balances. The system also provides a Merkle tree tool so users can verify their own funds.
Final Thought
MEXC’s move toward monthly, independently verified Proof-of-Reserves audits shows a clear industry shift toward stronger transparency. As regulation increases and user trust becomes more important, regular PoR reporting may soon become the standard for all major crypto exchanges.
