Bitpanda submits audit report for 5 cryptoassets BTC, ETH, XRP, ADA and DOGE

It only took a few days and now it is available: All interested Bitpanda users can be sent the audit report of the auditor KPMG on the crypto-assets of the Viennese neo-broker Bitpanda. After the FTX collapse, the Vienna-based crypto company rushed to provide proof and assurances to its nearly four million users that their crypto assets are indeed safe.

“KPMG concluded that Bitpanda cold wallet balances for BTC, ETH, XRP, ADA and DOGE exceed BTC, ETH, XRP, ADA and DOGE user holdings,” the report reads. The five biggest crypto assets Bitcoin, Ethereum, XRP, Cardano and Dogecoin were checked and whether they are on cold wallets. No statement was made for other cryptoassets – neither for Chainlink (LINK), Solana (SOL), stablecoins such as USDT or USDC, nor for the in-house utility token BEST, which can be used at Bitpanda for cheaper trading fees, e.g.

“FTX’s fast and easy approach to customer security will tarnish the reputation of the crypto industry for a long time to come. However, this agreed process by KPMG is further proof that we will always put our clients’ trust and the safety of their funds first,” CEO Eric Demuth said in a statement. “This review is just the latest example of the many steps , we take to ensure these two guiding principles. At Bitpanda, we place the highest priority on protecting our customers and recognize the inherent value of being compliant – and we truly believe this should become the standard in the industry we operate in.”

FTX bought properties in the Bahamas with money from users

Proof of reserves controversial

It should be noted that this auditor’s report does not constitute an audit, an audit review or any other audit in accordance with Austrian principles or with International Standards on Auditing (ISA). Unlike other crypto companies, Bitpanda has sometimes not published wallet addresses. You can use this to see how many assets are stored there via blockchain explorers.

At FTX, as new CEO John J. Ray III puts it, there has been a “complete failure of corporate control,” with user funds even buying properties in the Bahamas for FTX employees. The FTX collapse sent shockwaves through the crypto industry. For example, leading crypto exchange Binance has provided links to cold wallets – these aim to prove that users’ crypto assets are really there and have not been misused for other purposes.

Crypto companies like Binance or originally published links to their wallets, so theoretically anyone can use the blockchain explorer to see how many assets are in those wallets. Many also want to provide more comprehensive “Proof of Funds” or “Proof of Reserves” using cryptographic Merkle Trees. But this is also controversial because they say nothing about the liabilities associated with the assets.

Crypto asset manager Grayscale currently states: “Due to security concerns, we do not make such on-chain wallet information and confirmation information publicly available via a cryptographic proof-of-reserve or other advanced cryptographic accounting method.” Grayscale is part of the digital Currency Group and is therefore a sister company to Genesis – that is, the crypto trading company that was already caught up in the FTX collapse (more on this here).

FTX failure: Bitpanda and Co. assures users that cryptoassets are really there

Leave a Comment