Cryptocurrency exchange Kraken announced on November 5, 2024, the completion of its 2024 Proof of Reserves (PoR) audit, independently verified by registered CPA firm The Network Firm. The report, made available to users on November 1, covers total client assets valued at over $21.5 billion, including major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USDC, USDT, and XRP.
Proof of Reserves Mechanism and User Verification
The latest attestation includes a detailed breakdown of client liabilities, a cryptographic method for users to independently verify their account balances are fully backed by onchain assets, and confirmation that Kraken maintains control over the wallets holding client funds. The Network Firm, a registered CPA, specifically attested to Kraken's control over these onchain wallets.
Kraken emphasized that the verification covers all major assets on its platform, and the firm has published a list of wallet addresses and onchain balance snapshots. Users can cross-check their account balances using Kraken's official tools or blockchain explorers, effectively eliminating any risk of fractional reserves.
Industry Context and Transparency Trends
Since the collapse of FTX in 2022, the cryptocurrency industry has demanded greater transparency from exchanges regarding their reserve positions. Kraken was one of the first exchanges to adopt regular Proof of Reserves audits, having completed multiple third-party verifications in prior years. The 2024 report strengthens its hybrid model combining Merkle tree technology with third-party attestation, balancing user privacy with data verifiability.
Notably, the verified asset size represents an increase from the previous year, reflecting continued growth in user trust. As of the report's release, Kraken has not been implicated in any major reserve irregularities, and its transparent operational ethos is often cited as a compliance benchmark within the industry.
How Users Can Verify Their Balances on Kraken
After logging into their Kraken accounts, users can find the Proof of Reserves tool under the 'Security & Verification' section. The system generates a cryptographic proof based on each user's account data, which can be cross-checked against public wallet addresses using Kraken's provided public keys. The entire process is conducted locally without exposing private keys or sensitive information.
Additionally, the full third-party audit report is publicly available on Kraken's website for download. Kraken has committed to issuing quarterly Proof of Reserves reports and is exploring advanced zero-knowledge proof technologies to further enhance verification efficiency.