Several exchanges have published audits in recent weeks, demonstrating to a third-party auditor that they have control over a claimed number of bitcoins in various addresses. The Vault of Satoshi proof-of-solvency takes this a step further, publishing the addresses and actual number of coins in their cold wallets.
In a post announcing the new feature on Reddit, Director of Marketing Adam Cochran explained that an audit, while useful, “simply wasn’t open enough.”
Users can self validate both their balance and the overall reserves of the exchange by navigating to our security center and selecting “BTC Proof of Solvency”. From there, load the partial tree list, select “online tools” and copy paste in the relevant information to validate the holdings.
Cochran noted that the exchange would not be publishing its hot wallet address, and that users should expect a discrepancy of up to 5-6% in the total balance.