Deribit halts daily proof-of-reserves after shifting 90% of client assets to Coinbase
The change
Short version: Deribit is turning off its public daily proof-of-reserves page as of Sept. 1. The exchange says this is part of a back-end wallet revamp tied to its integration with Coinbase after Coinbase bought the derivatives platform in August 2025. According to Deribit, roughly 90% of client funds have been moved into custody arrangements with Coinbase.
Until now, Deribit published a privacy-friendly Merkle-tree snapshot every day. That system let each user check a unique proof index to confirm their balance was included, and anyone could add up the published liabilities and compare them to the wallets Deribit showed publicly. But that daily public check is being retired — there’s no promised public replacement dashboard or continued client-level Merkle proofs after Sept. 1.
It’s worth noting the old snapshot wasn’t a full-picture snapshot anyway. Assets kept with third-party custodians were already excluded from the public file, so the daily check only covered what Deribit held directly. Deribit hasn’t clarified whether the Coinbase-held portion was historically included or excluded from the public proof.
Why it matters (and what you can do about it)
Takeaway: removing the public proof-of-reserves doesn’t automatically mean there’s a hole in the vault — it just means customers lose a daily, easy way to verify things themselves. Regulatory controls, reconciliations and audits are still in play, but they’re less visible and happen less often than a live daily snapshot.
The Dubai regulator that oversees Deribit FZE requires firms under its rules to keep reserves equal to 100% of client liabilities, hold those reserves one-to-one in the same asset, reconcile daily, and obtain independent reserve audits at least every six months. Covered firms also must submit wallet addresses and periodic reports to the regulator. Deribit’s public paperwork lists it as an active exchange and allows the use of third-party custodians while saying client assets must be segregated and clients retain legal title. The company’s service provider list names Coinbase for custody and custody tech, though it doesn’t spell out which Coinbase legal entity is involved.
So what can customers do? If you want reassurance beyond the headlines: request the audited financial statements or reserve reports Deribit says it will make available on request, ask for specifics about which legal entity is holding your assets, and keep an eye on regulator filings. If you’re the nervous type (many of us are), consider minimizing custodial exposure, moving a portion of funds to self-custody, or asking for written confirmations from the exchange about segregation and audit timing.
Bottom line: this is a visibility downgrade rather than proof of insolvency. It swaps a daily public verification tool for controls that remain in place but live behind the curtain — useful, but less convenient for the public snoop in all of us.
