Bybit's 40th Proof-of-Reserves Report Reveals Increased Assets, USDT Decline

Bybit, a major cryptocurrency exchange, has published its 40th proof-of-reserves report, showing a significant increase in assets under custody. The report, which covers balances as of September 23, 2023, 03:00 UTC, reveals that users hold more Bitcoin and Ether on the exchange, while USDT has decreased by 11% compared to the previous snapshot.

The report shows a 104% Bitcoin reserve ratio, with 56,131 BTC held by users against 58,721 BTC in the exchange's wallets. For Ether, the reserve ratio is 103%, with 551,868 ETH held by users against 570,018 ETH in the exchange's wallets.

However, the report does not provide clear information on where the USDT that left the platform went, whether it was withdrawn, transferred to other coins, or held in a product outside the comparable line.

The report also highlights a discrepancy in the total assets reported by Bybit and those estimated by independent datasets. Arkham's analysis found that Bybit's reported $16.2 billion assets differed from its own $14 billion estimate, highlighting methodology gaps.

Hacken verified the report's Merkle-tree data, confirming wallet control but not conducting a full statutory audit. The report does not cover tokens outside the 50-coin list, off-platform receivables, or whether coins in those wallets are borrowed or pledged.