Verifying Exchange Reserves with Arkham: A Step-by-Step Guide

The collapse of major centralized platforms in 2022 changed how many crypto traders and investors view counterparty risk. To maintain real-time visibility into an exchange's financial health, traders and institutions turn to blockchain analytics.

One such platform is Arkham, which provides a live, transparent window into the exact wallet clusters controlled by centralized entities, providing instant verification of reserves. In this guide, we'll outline exactly how anyone can verify a crypto exchange's proof of reserves using Arkham, focusing on the exchange Bybit as our central case study.

Bybit is one of the largest cryptocurrency exchanges in the world, founded in 2018 and headquartered in Dubai. It caters to both retail traders and institutional clients. While Bybit publishes its own Proof of Reserves (PoR) data, for those who prefer not to rely solely on exchange-provided data, Arkham offers the ability to independently verify Bybit's on-chain footprint 24 hours a day.

Arkham aggregates the known wallets of an exchange, clusters them into a single entity profile, and tracks the net value of those assets in real time. According to Arkham data, Bybit has 17.7M addresses and around $15.5 billion in assets. To begin your analysis, navigate directly to the Bybit entity page on Arkham: https://arkm.com/explorer/entity/bybit.