Deribit moved 90% of client assets to Coinbase, then killed its daily proof-of-reserves check

What happened

Deribit moved 90% of its client assets to Coinbase on September 1. It then stopped its daily proof-of-reserves check, which was a public Merkle check, leaving less public VARA reports and audited materials.

Confirmed

Global impact / market context

For investors, proof-of-reserves is a way to verify a crypto exchange holds enough assets to back customer deposits. Removing this daily public check reduces transparency, which may lower trust and affect customer confidence in Deribit's safety.

Analyst inference

The move to Coinbase, a major custodian, could signal a shift toward institutional-grade storage. But the loss of daily public verification might worry traders, potentially influencing where they choose to hold assets, especially during uncertain market conditions.

Analyst inference

What to watch

1. Monitor whether Deribit resumes a daily proof-of-reserves check or any public verification method, as the change on Sept. 1 is confirmed but its reversal is not. Confirmed
2. Check VARA reports and audit materials that Deribit may publish, since these are confirmed to be less public but could offer updated information on asset holdings. Proposed
3. Watch for any customer responses, such as withdrawal patterns or public statements, that might indicate trust shifts after the transparency change. Analyst inference

Evidence

• cryptoslate.com