• MEXC’s PoR audits will be published monthly by Hacken, providing third-party validation without internal interference.

• The initiative builds on MEXC’s existing Merkle tree system for user balance verification.

• Current reserve ratios at MEXC stand above 100% for key assets like Bitcoin and Ethereum, as per recent internal checks.

MEXC Proof of Reserves audits with Hacken boost user trust through monthly verifications. Discover how this transparency measure safeguards your crypto assets—explore MEXC’s commitment today.

What is MEXC’s Partnership with Hacken for Proof of Reserves?

MEXC Proof of Reserves initiative involves a collaboration with blockchain security firm Hacken to conduct and publish monthly independent audits of the exchange’s asset reserves. This step ensures that MEXC maintains full backing for user balances across major cryptocurrencies. By introducing external verification, the partnership addresses longstanding concerns in the centralized exchange space following high-profile incidents like the FTX collapse.

The exchange will publish monthly, independently verified reserve reports, giving users third-party confirmation that assets are fully backed.

MEXC has expanded its partnership with blockchain security platform Hacken to introduce monthly, independently verified Proof-of-Reserves (PoR) audits, marking a shift toward a more formalized transparency framework for the exchange.

The monthly audits will add independent verification to MEXC’s existing PoR system, creating an external record of reserves that cannot be altered internally. Hacken will publish each report independently, without MEXC’s review or approval, starting in late November. The checks will compare MEXC’s reserves with user balances across major assets.

MEXC said its current reserve ratios remain above 100% across major assets, with users able to verify their balances through the exchange’s Merkle tree system on a dedicated proof-of-reserves page.

A Merkle tree PoR lets users verify that their assets are included in an exchange’s total balances by checking cryptographic “hashes” instead of revealing full account data.

Hacken is a blockchain security and compliance company with expertise in Web3 and AI-assisted tools. Since 2017, it has worked with more than 1,500 clients, including the European Commission, MetaMask, the Ethereum Foundation and Binance.

MEXC, founded in 2018, says it serves over 40 million users across more than 170 countries and regions. CoinMarketCap data ranks the exchange ninth by trading volume, at roughly $3.65 billion.

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How Do Hacken’s Monthly Audits Enhance MEXC’s Transparency?

Hacken’s audits provide a rigorous, external layer of scrutiny to MEXC’s reserve management, verifying that holdings in assets like Bitcoin and Ethereum fully cover user liabilities. Each report will detail cryptographic proofs using a Merkle tree structure, allowing individual users to confirm their balances without exposing sensitive data. According to Hacken’s methodology, these checks include wallet ownership validation and liability comparisons, ensuring reserves consistently exceed 100%—a standard echoed by industry experts as essential for rebuilding trust post-FTX.

Since FTX’s collapse in November 2022, centralized exchanges have been trying to restore user confidence. In the weeks after FTX’s bankruptcy, more than $20 billion flowed out of major platforms, according to CoinGecko data.

Binance was the first major exchange to disclose its reserves after the collapse. It published an initial report on Nov. 10, 2022, followed days later by a Merkle Tree version that allowed users to verify its Bitcoin holdings.

Around the same period, OKX, Deribit and Crypto.com also released proof-of-reserves reports, but most disclosures were one-off snapshots rather than ongoing audits, drawing criticism from the community for offering only limited transparency.

Sources: David Gokhstein

In 2022, Kraken underwent a cryptographic audit by Armanino LLP, which verified that its Bitcoin (BTC) and Ether (ETH) holdings matched customer balances. The exchange said that the independently validated process provided a level of transparency that legacy financial companies rarely offer.

Bybit has been using Hacken to conduct PoR audits since June 2024. According to Hacken, the reviews check user liabilities, verify wallet ownership cryptographically, confirm that reserves exceed liabilities and use a Merkle tree system that lets users verify their own balances.

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As blockchain security experts at Hacken emphasize, “Ongoing audits like these set a new benchmark for accountability in crypto exchanges, protecting users from the risks exposed in past failures.” This approach not only complies with evolving regulatory expectations but also aligns with best practices from firms like the Ethereum Foundation, which Hacken has supported since its inception.

The partnership underscores MEXC’s proactive stance in a market where transparency is non-negotiable. With over 40 million users relying on the platform, these monthly reports will offer real-time insights into reserve health, potentially influencing trading volumes and user retention. Industry data from CoinMarketCap highlights MEXC’s strong position, with daily volumes nearing $3.65 billion, making this initiative timely amid growing scrutiny on exchange solvency.

Proof-of-Reserves has evolved from a reactive measure to a core trust mechanism. Exchanges adopting regular, third-party verifications demonstrate operational maturity, as seen in Bybit’s collaboration with Hacken since mid-2024. There, audits have consistently shown reserves surpassing liabilities by significant margins, providing a model for peers like MEXC.

Frequently Asked Questions

What Does MEXC Proof of Reserves Mean for User Security?

MEXC Proof of Reserves confirms that the exchange holds sufficient assets to cover all user deposits, verified monthly by Hacken. This process uses cryptographic proofs to ensure 1:1 backing without revealing private data, reducing risks of insolvency and building long-term confidence among the platform’s 40 million users.

How Can Users Verify Their Balances Under MEXC’s New System?

Users can access MEXC’s dedicated Proof-of-Reserves page to check their balances via the Merkle tree interface. By inputting a personal hash, they confirm inclusion in the total reserves report published by Hacken each month, offering a simple, privacy-preserving way to validate asset security directly from their devices.

Key Takeaways

• Monthly Independent Audits: Hacken’s verifications ensure MEXC’s reserves are externally validated, starting late November for ongoing transparency.
• Merkle Tree Technology: This cryptographic method allows secure, individual balance checks without full data exposure, a standard adopted post-FTX.
• Industry Leadership: As the ninth-largest exchange by volume, MEXC’s move aligns with global best practices, encouraging users to engage confidently.

Conclusion

MEXC’s partnership with Hacken for Proof of Reserves audits represents a pivotal advancement in exchange transparency, integrating secondary measures like Merkle tree verifications to safeguard user assets. By committing to monthly, independent reports, MEXC not only addresses past industry vulnerabilities but also positions itself as a leader in secure crypto trading. As the sector matures, staying informed on such developments will empower users to make informed decisions in an ever-evolving market.