What is proof of reserves?

Proof of reserves is evidence that a custodian controls certain assets at a particular time.

Imagine a warehouse showing you a photograph of its shelves. The picture can help, but you still need to know when it was taken, whether every shelf was included and how much the warehouse owes other people.

A little more technical

Crypto exchanges can publish wallet addresses, sign messages or use a Merkle tree to let customers check whether their balance was included in a liabilities snapshot. A reserve ratio compares the assets shown with the customer liabilities included in that calculation.

Common misunderstanding

Proof of reserves is not a full financial audit. It may not show every liability, borrowed asset, offchain obligation or operational restriction. It also does not prove that a withdrawal system works for every asset and network.

Source: Bitget’s September 2026 reserve update is an issuer example of a reserve-ratio report. It predates the September 24 incident and is not independent proof of Bitget’s post-incident condition.