OKX and Proof of Reserves: A Transparency Model that Builds Investor Confidence

In a crypto sector marked by insolvency scandals, led by FTX, financial transparency has become a decisive criterion for investors. OKX, one of the leading global exchange platforms, has understood this well: since October 2022, it has been publishing its Proof of Reserves (PoR) monthly, a cryptographic report that allows verification that user deposits are actually covered by real assets. With its 29th report published on March 31, 2025, the exchange shows 24.6 billion dollars in primary assets and a reserve ratio above 100%. But what exactly does this proof of reserves mean? And why does OKX stand out in this area ?

What is OKX’s Proof of Reserves?

Definition and Operating Principle

The Proof of Reserves (PoR) is a cryptographic attestation demonstrating that an exchange platform holds enough digital assets to cover all of its users’ deposits at a given point in time. Unlike a simple accounting audit, this method relies on publicly verifiable mathematical proofs without revealing individual account balances.

OKX has published its PoR every month since October 2022, currently covering 22 major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC), XRP, Solana (SOL), Dogecoin (DOGE), OKB, and other high liquidity assets. The latest report (March 31, 2025) reveals that the exchange maintains a reserve ratio greater than 100% for all these assets, thus guaranteeing full coverage of client funds.

zk-STARK Technology: Transparency and Privacy

To ensure the integrity of its PoR, OKX uses zk-STARK technology (Zero-Knowledge Scalable Transparent Argument of Knowledge), a zero-knowledge proof system. Concretely, this method mathematically proves the truthfulness of data: aggregated balances, no negative accounts, inclusion of all users, without compromising individual account confidentiality.

The process relies on three verifiable constraints:

1. Total balance constraint: the sum of assets held by OKX exactly matches the sum of all user account balances.
2. Non-negative constraint: no account shows a negative balance, ensuring each user has positive equity.
3. Inclusion constraint: all accounts are included in the Merkle tree used for calculation, eliminating any risk of selective exclusion.

In 2024, OKX optimized this system by reducing the verification file size from 2.55 GB to only 598 KB, making verification accessible even to users with limited technical resources.

Key Figures of the 29th Proof of Reserves

Sustained Reserve Growth

The report dated March 31, 2025 marks a notable increase from the previous year. OKX now displays $24.6 billion in primary assets, an increase of 11% year-over-year. To contextualize, in January 2024, the exchange held $14.9 billion, representing a 99.3% growth in one year between January 2024 and January 2025, in addition to a MiCA license for Europe in 2025.

Reserve ratios for key assets remain above 100%, confirming solid solvency:

• Bitcoin (BTC): ratio > 100%
• Ethereum (ETH): ratio > 100%
• Tether (USDT): ratio > 100%
• USD Coin (USDC): ratio > 100%

This over-collateralization means OKX holds more assets than necessary to cover client liabilities, offering an additional safety margin in case of volatility or massive withdrawals.

Independent Audit by Hacken

For several months, OKX has had its PoR audited by Hacken, a blockchain security firm. Hacken’s independent audit validated over 655,000 unique wallet addresses across more than 20 blockchain networks (Ethereum, Solana, Polygon, Bitcoin, etc.), with zero discrepancies found between declared reserves and verified on-chain assets.

Pedro Bustos, auditor at Hacken, stated: “Working with the OKX team has been an exceptional experience. Their 650,000+ wallets holding over $39 billion at the time of the audit cover all liabilities with a ratio of at least one-to-one. This shows how platforms can prove user funds are secure through external verifications.”

OKX, a Transparency Reference According to Nic Carter

Top Rating from a Recognized Expert

Nic Carter, general partner at Castle Island Ventures and a recognized expert in Proof of Reserves, awarded OKX the highest score among major global exchange platforms in his PoR evaluation framework. As early as September 2023, Carter praised OKX’s credibility, the quality of its PoR system, and its management’s commitment to transparency.

This recognition makes OKX one of the few exchanges alongside BitMEX, Deribit, or Kraken to offer a verification system robust enough to operate without a third-party auditor in certain cases. However, OKX chose to further reinforce its credibility by commissioning monthly audits from Hacken.

Comparison with Other Exchanges

Unlike many competitors who publish PoRs irregularly or incompletely, OKX maintains a monthly rhythm for 29 consecutive months. This regularity is a mark of seriousness and allows users to track reserve evolution in near real-time.

According to Nic Carter’s observations and industry reports, other platforms like Binance, Kraken, or Bitfinex have also adopted PoR systems but with less standardized or less frequent approaches. OKX thus stands out for its rigor and consistency.

How to Verify OKX’s Proof of Reserves Yourself?

Open Source Tools and Verification Autonomy

OKX provides users with open source verification tools available on GitHub, allowing anyone to independently confirm the platform’s solvency. Over 2 million users have already interacted with these tools since the program’s launch in 2022.

The verification process involves three main steps:

1. Verify the Inclusion Constraint

Each user can download their report data via the OKX interface and use the zk-STARK Validator tool to confirm their balance is included in the Merkle tree. If successful, the following message displays: “Inclusion constraint validation succeeded.”

2. Verify Total Balance and Non-Negative Constraints

By downloading the zk-STARK file from the “Liability Report” tab and running the validation tool, it is possible to confirm that assets declared by OKX are accurate and that no account shows a negative balance.

3. Verify Wallet Address Ownership

OKX publishes the list of its on-chain wallet addresses, accompanied by a signed message (“I am an OKX address”) with the corresponding private key. Third-party tools or OKX’s VerifyAddress tool can confirm ownership of these addresses and compare on-chain balances with published data.

An Approach Aligned with Crypto Ethics: “Don’t Trust, Verify”

This approach aligns with the fundamental ethics of the crypto sector: “Don’t Trust, Verify”. By making its reserves publicly verifiable, OKX responds to growing demands from users and regulators for greater transparency. According to a 2024 OKX survey, 84% of respondents consider monthly PoR publication “important” or “very important”, and 88% see transparency as an essential criterion when choosing a crypto platform.

OKX Protect: Awareness and Shared Responsibility

An Educational Hub to Strengthen Individual Security

Aware that security is a shared responsibility, OKX launched OKX Protect, a comprehensive educational center designed to help users adopt good practices. This hub offers resources for setting up two-factor authentication (2FA), creating withdrawal whitelists, monitoring new device logins, and recognizing phishing attempts.

This initiative addresses a sector reality: a significant share of security incidents stem from individual compromises (phishing, password theft, social engineering) rather than technical platform flaws. By training its users, OKX mechanically reduces overall risk.

What This Changes for the User

Trust and Transparency in a Still Fragile Sector

For the average user, OKX’s PoR offers a concrete guarantee: their funds are truly held by the platform and can be withdrawn at any time. Unlike FTX, which used client deposits for risky operations via its Alameda Research trading branch, OKX maintains a clear separation between client assets and its operational capital.

This transparency is particularly valuable in a context where several major platforms went bankrupt in 2022 and 2023, causing losses of several billion dollars for investors. OKX’s monthly PoR allows users to continuously verify the exchange’s solvency without relying solely on marketing claims.