Reading Time: 11minutes What follows is the content from a comment letter submitted to the SEC in response to questions and concerns regarding Bitcoin’s value. The comment letter can be viewed in its entirety here but the content is copied below. The Value of Bitcoin Bitcoin is often described as digital money. However, given that reasonable people may disagree as […]
Coinfloor is a custodian of client bitcoins and we believe that we must set the industry standard for transparency and regular audits. Without proper public accountability, the industry will not be able to grow and mature. This is why we are committed to releasing a Provable Solvency Report every month. Coinfloor is proud to have the longest standing track record among bitcoin exchanges in regards to auditing.
Today we are publishing our 63rd monthly Provable Solvency Report with step-by-step validation instructions for your convenience.
As of today, Coinfloor holds a total of 3,855.4261 XBT on behalf of our clients. You are invited to verify that your held bitcoins are included in this balance by following the instructions below.
What does the Provable Solvency Report include?
We started out by creating an obfuscated report of all current client balances (the Solvency Report) and then generated a SHA-256 hash of this report.
We then created a bitcoin transaction to ourselves, that includes all currently held client bitcoins, for a value of 3,861.2281 XBT. The output of the script also includes the OP_RETURN of the SHA-256 hash of the report, proving that at the time of making the solvency report, Coinfloor held all of our clients’ XBT funds. You can verify the amount and details of the transaction on the blockchain.
Your API authentication cookie: You will find it in My Account > Dashboard in the Coinfloor signed in view, in the API section (visible only for fully verified accounts).
Copy the entire contents of the solvency report (including any leading or trailing spaces or blank lines) into the SHA-256 generator and calculate the SHA-256 hash of the report.
Click on the `SHOW ADVANCED` switch to view the OP_RETURN, where you will find the hash generated in the previous step matches the hash in the OP_RETURN output script of the transaction that includes all customer bitcoins.
Instructions for finding your account balance within the Solvency Report:
1. Go to
your local SHA1sum application
to calculate the SHA-1 digest of a message consisting of the timestamp shown at the top of the Solvency Report (1560853409) and your API authentication cookie.
Example (Linux):
timestamp: 1560853409
API authentication cookie (API Key): 9BTa7M0Z/Mrk6tFMJwEkTV3BQek=
(the command may differ depending on the SHA1sum application used)
2. Find the resulting hash in the solvency report. Your balance is shown on that line in satoshi units. 1 bitcoin = 100 000 000 satoshis. For your convenience, here is a link to a bitcoin unit converter:
We believe that this approach is the best way to achieve maximum accountability whilst retaining privacy for our clients. We welcome your feedback and hope that in time, other exchanges will also help safeguard client funds by providing proof of solvency reports to their users on a regular basis.
Earlier today, we unveiled another significant milestone for Versal, the industry’s first adaptive compute acceleration platform (ACAP), and we are excited to share...
