A proof of reserve document published by OKX on January 19th, 2023 has revealed that the cryptocurrency exchange holds $7.5 billion in assets. It is not comprised of its own cryptocurrency.
For the first time, the third reserve test from OKX showed a breakdown of assets. It is required to have a 105% reserve ratio for Bitcoin (BTC) and Ethereum, and this report shows that both USDT and Ethereum are overcollateralized.
The exact reserve mix published by OKX is a response to CryptoQuant, an instrument used to measure the “purity” of reserves. CryptoQuant’s data indicates that OKX’s funds are completely clean, while Huobi is 60% clean, Bitfinex is 70% clean, and Binance is 87% clean.
“I think everyone will learn a great deal over the coming six months to a year. We will all stress test each other’s reserves, hopefully in a constructive manner,” said Haider Rafique, OKX’s chief market officer, in an interview with CoinDesk.
“We can all learn from each other and ask challenging questions; hopefully most establishments have good intentions,” she added.
Genesis Global Capital Plans to File for Bankruptcy
According to an article from Bloomberg, prominent Bitcoin lender Genesis Global Capital is preparing to file for bankruptcy.
The company has declared that it will seek bankruptcy protection if it cannot raise the necessary funds. It is also said to be currently engaged in private discussions and negotiations with creditors.
The prospect of a bankruptcy filing has been looming for some weeks as Genesis has been attempting to acquire fresh capital and reach a compromise with creditors.
The failure of FTX left Genesis vulnerable to criticism for abruptly halting customer redemptions and new originations in November of last year. Many people were adversely affected by the collapse of the FTX cryptocurrency exchange, prompting Core Scientific Inc. and BlockFi to file for bankruptcy protection in the months following.
The cryptocurrency was invented by the Winklevoss brothers and Gemini, with whom Genesis is also embroiled in a legal dispute. They are accusing Genesis of owing them $900 million related to the Earn product, a cryptocurrency loan service operated jointly by Gemini and Genesis.
