Global crypto exchange MEXC has expanded its partnership with Hacken, naming the compliance firm as the exchange’s independent auditor for its new monthly Proof-of-Reserve (PoR) audit standard.
Hacken is a blockchain security and compliance company that has worked with more than 1,500 companies since its establishment in 2017, including high-profile institutions such as the Ethereum Foundation, MetaMask, Binance, and Bybit.
MEXC initially employed Hacken’s services in March 2025 to conduct a comprehensive risk assessment of the platform, including identifying and remediating weaknesses in its web and mobile applications and strengthening encryption to prevent potential data leaks.
The risk assessment results revealed no critical or high-risk vulnerabilities to the security of MEXC’s mobile application. All previously identified minor vulnerabilities were also resolved before the release of the final report.
These initiatives form part of MEXC’s Proof-of-Trust campaign, launched earlier this year to improve consumer protection and enhance transparency across the crypto sector.
MEXC’s Proof-of-Trust Campaign
MEXC introduced its Proof-of-Trust global campaign in July, aiming to advance security implementation, expand strategic security partnerships, and educate users.
The exchange had also established a $100 million Guardian Fund to support the campaign by insuring users affected by large-scale exploits, targeted attacks, and unforeseen system vulnerabilities.
MEXC operates the guardian fund transparently, publicly disclosing wallet addresses on the website to enable users to monitor blockchain transactions.
The campaign also includes a blockchain literacy programme through MEXC Learn, the platform’s educational hub that provides free beginner guides, safety tools, and advanced trading insights.
Fostering Transparency Through Monthly Proof-of-Reserve Audit
MEXC’s decision to conduct monthly proof-of-reserve audits signals a clear prioritization of security and a strong commitment to improved transparency and consumer protection.
Hacken has been appointed as the independent auditor responsible for delivering these monthly assessments. The compliance firm will publish each report independently, without MEXC’s review or approval. The audits will compare MEXC’s reserves with user balances across major assets.
The first report of this initiative is expected by the end of November, marking the beginning of a new era of accountability for the exchange’s users.
MEXC had noted earlier that its current reserve ratios remain above 100% across major assets, with users able to verify their balances through the exchange’s Merkle tree system on a dedicated proof-of-reserves page. The Merkle tree system allows users to verify that their asset balances are included in the total reserves by checking cryptographic hashes without revealing their personal account data.
Centralized Exchanges Adopt Proof-of-Reserve as Standard of Trust
Since the collapse and bankruptcy of FTX in 2022, crypto users have become increasingly wary and distrustful of centralized exchanges.
To restore user confidence, these exchanges have been exploring stronger accountability and security measures, including proof-of-reserve audits.
Binance was one of the first centralized exchanges to initiate proof-of-reserve reporting after the FTX collapse, publishing its first audit in November 2022.
Centralized exchanges like Bybit and Kucoin have utilized Kraken’s services for their audit exercises. Bybit has been using Hacken to audit proof-of-reserve reports since 2024. According to the most recent audit in February 2025, Bybit is solvent, as it maintains a reserve ratio exceeding 100%.
KuCoin adopted the monthly proof-of-reserve report standard and has currently published over 35 proof-of-reserve audit reports.
A Shift Towards Continuous Proof-of-Report Audits
The FTX collapse prompted cryptocurrency exchanges to explore new security approaches, such as proof-of-reserve reporting, to enhance security and transparency.
However, many traders have criticized occasional or periodic proof-of-reserve audits carried out by most exchanges, arguing that such reports fail to demonstrate the long-term financial state.
MEXC has taken a more proactive approach by establishing an independent, monthly proof-of-reserve audit standard, demonstrating long-term dedication to consumer protection and accountability.
Each monthly report will verify MEXC’s reserves against user balances across major digital assets. Hacken will then publish the reports publicly, creating a verifiable long-term record of the exchange’s financial position.
When asked whether monthly proof-of-reserve audits would become an industry standard, a spokesperson for MEXC said:
We believe the industry is moving in this direction. One-time or irregular PoR snapshots no longer meet the expectations of either users or institutional counterparties. Strengthening regulation in the US, EU, and Asia also points to a trend toward mandatory periodic reporting.
A New Benchmark for Accountability
The crypto exchange industry is beginning to witness a shift in priorities, from profit maximization to security and transparency, with exchanges like MEXC leading the charge.
By combining regular audits, technical security assessments, insurance protections, and user education, MEXC is setting a new standard for how exchanges safeguard user assets.
This approach gives users clarity on how their funds are managed and enhances their confidence in the platform’s long-term stability.
