What an Exchange's Proof of Reserves Actually Proves

A breakdown of proof-of-reserves mechanics using Bitget: after $387.5 million was drained on September 24, 2026, its 47th report showed a 131% reserve ratio. A Merkle sum tree lets users verify their own balance, but the snapshot excludes borrowed assets, fiat and off-chain liabilities.

• Attackers drained about $387.5 million from Bitget on September 24, 2026
• The 47th proof-of-reserves report showed a 131% overall reserve ratio
• A Merkle sum tree lets each user verify their balance without exposing others
• zk-STARK proofs close the fake negative balance trick, as OKX adopted