Toobit is a widely used international cryptocurrency exchange that has released its latest Proof of Reserves report, independently verified by Hacken.
Over 100% Collateral Ratio
Hacken’s assessment confirms that Toobit maintains a collateral ratio exceeding 100% for all in-scope digital assets, including BTC, ETH, USDT, and USDC. The audit verifies that every trader deposit has at least a 1:1 backing, and it identifies a reserve surplus that fully over-collateralizes trader liabilities.
The verification process also validated individual balances for more than 640,000 accounts. Auditors achieved this by cross-referencing internal records with legal documentation and statements from third-party institutional custodians, ensuring a high degree of accuracy and trust in the results.
Report Mechanics
To ensure full transparency, Hacken applied a multi-stage methodology centered on three main phases. The first phase, Proof of Liabilities, involved verifying the total balances of over 600,000 liability holders to confirm an accurate representation of client deposits.
The second phase, Asset Verification, compared total reserve balances against the reported client liabilities to confirm that reserves covered those liabilities in full. The final phase, Operational Oversight, reviewed information flow and custodial reporting to ensure that data remained authentic and untampered throughout the process.
Alongside the audit, Toobit launched an upgraded Proof of Reserves page that goes beyond static reporting to provide a dynamic transparency model. This portal lets traders monitor live reserve ratios for major tokens and access historical audit data through an intuitive interface.
Merkle Tree Technology
A key feature of the portal is the use of Merkle Tree technology. By aggregating trader balances into a single Merkle root hash, Toobit offers a transparent, tamper-proof method for users to verify that their specific account balance was included in the audit without exposing sensitive information.
This cryptographic proof enhances accountability while preserving user privacy.
The full audit report is available for public review and provides detailed documentation of the audit scope, methodology, and technical findings on Hacken’s official site.
These developments reflect a broader maturation within the cryptocurrency exchange sector driven by independent verification. Leading industry participants now report reserve coverage ratios in the 124%–125% range, well above the 100% safety benchmark. As regulatory frameworks such as MiCA increase oversight, long-term stability will increasingly rely on “compliance by design,” incorporating Proof of Reserves and transparent disclosures into the core operational infrastructure.