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- MEXC will now publish monthly, independently verified PoR audits through Hacken.
- The system uses a Merkle tree model allowing users to verify their own balances privately.
- The move aligns with post-FTX industry demand for ongoing, cryptographically validated transparency.
MEXC has taken a major step toward deepened transparency and user protection by expanding its partnership with blockchain security firm Hacken to deliver monthly, independently verified Proof-of-Reserves (PoR) audits. The decision marks a significant shift from the industry’s reliance on occasional reserve snapshots, moving instead toward continuous, third-party-verified accountability.
A New Standard for Exchange Transparency
Under the new agreement,Hack en will publish monthly PoR reports without requiring review or approval from MEXC—ensuring the data remains tamper-proof and independently validated. The audits will cross-check MEXC’s on-chain reserves against total user liabilities across major digital assets, creating an external transparency layer that cannot be adjusted internally.
MEXC stated that its reserve ratios remain above 100%, and users can continue verifying their holdings through the exchange’s Merkle tree-based PoR portal. This privacy-preserving structure allows customers to confirm that their balances are included in the total reserve pool without disclosing personal account information.
Hacken’s Expanding Role in Crypto Compliance
Hacken, a long-standing security and compliance provider, brings extensive Web3 and AI-driven auditing expertise. Founded in 2017, the firm has supported more than 1,500 organizations—including MetaMask, the Ethereum Foundation, Binance and the European Commission—in strengthening cybersecurity and transparency standards.
The updated MEXC partnership follows Hacken’s ongoing PoR work with Bybit, which began in mid-2024. Hacken’s methodology includes verifying liabilities, validating wallet ownership, confirming excess reserves and enabling user-level checks via Merkle tree proofs.
PoR Becomes a Trust Benchmark Post-FTX
Since the collapse of FTX in 2022, centralized exchanges have faced persistent pressure to show verifiable solvency. The industry saw more than $20 billion in withdrawals as users questioned the safety of custodial platforms. PoR became the preferred transparency mechanism, but most exchanges stopped at single-instance disclosures rather than implementing routine audits.
While Binance, OKX, and Crypto.com all released initial PoR data in 2022, only a handful have embraced ongoing, cryptographically validated reporting. Kraken’s independently verified Bitcoin and Ether audit by Armanino LLP set an early precedent, but few followed with regular checks.
MEXC’s move to monthly, independently published PoR audits positions the exchange among the most transparent major trading platforms. As the industry pushes toward stronger accountability, continuous verification—rather than one-off snapshots—appears poised to become the new trust standard for centralized exchanges.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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