WonderFi Releases Proof of Reserves and Platform Due Diligence Reports for Bitbuy and Coinberry
Toronto, Ontario--(Newsfile Corp. - November 14, 2022) - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (WKN: A3C166) (the "Company" or "WonderFi") is pleased to announce, in connection with the Company's commitment to a transparent crypto industry in Canada, it has completed a "Proof of Reserves & Platform Due Diligence Audit" for 2022 conducted by an independent third party, Blockchain Intelligence Group for its operating subsidiaries Bitbuy Technologies Inc. ("Bitbuy") and Coinberry Limited ("Coinberry"), each of which are registered crypto asset trading platforms with the Ontario Securities Commission and each of the provinces and territories of the Canadian Securities Administrators (the "Canadian Regulators").
The recent Proof of Reserves & Platform Due Diligence Audit is the first by WonderFi for both Bitbuy and Coinberry, and follows the same format as Bitbuy's previous Proof of Reserves Audits in 2019, 2020, and 2021.
The 2022 Proof of Reserves & Platform Due Diligence Audit consists of an external review of counterparty risk associated with the operations of Bitbuy and Coinberry, as well as an assessment of client funds held in cold storage for both companies.
- Bitbuy and Coinberry meet and exceed their own mandates of requiring 95% and 80% of all customer assets to be in cold storage, respectively.
- All Bitbuy customer balances are accounted for, with 97.16% of all customer funds in a third-party insured custodian account with BitGo Trust Company, Inc. Bitbuy's operational hot wallet balances account for the remainder of 2.84% of customer balances.
- All Coinberry customer balances are accounted for, with 96.28% of all customer funds in a third-party insured custodian account with Gemini Trust Company, LLC. Coinberry's operational hot wallet balances account for the remainder of 3.72% of customer balances.
- Both Coinberry and Bitbuy were scored as "Low Risk" platforms during an operational assessment that reviewed business activities, company registration, KYC/AML policies and a number of other criteria.
Pursuant to their respective registrations with the Canadian Regulators, Bitbuy and Coinberry are not currently permitted to extend clients margin, loans or other leverage with respect to their cryptocurrency, or practice other forms of fractional reserve banking. Further, such registrations subject both Bitbuy and Coinberry to adhere to specified terms and conditions, including transparent reporting obligations to the Canadian Regulators required for continued operation.
Bitbuy and Coinberry client cryptocurrency assets in cold storage are held with a third-party, insured custodian. Similarly, client Canadian dollar deposits are segregated from the Company's and held at regulated Canadian financial institutions. Bitbuy and Coinberry each have financial insurance bond insurance (or "FIBs") in place with a view to further protecting client assets. As a publicly traded company, WonderFi is required to publicly file audited financial statements and other continuous disclosure documents by operation of applicable securities laws, including to maintain its listing on the Toronto Stock Exchange.
More details on the Bitbuy and Coinberry 2022 Proof of Reserves & Platform Due Diligence Audits can be found at the following URLs:
President and Interim CEO, WonderFi
Binu Koshy, Communications Director
WonderFi is a leading technology company with the mission of creating better, unified access to digital assets through centralized and decentralized platforms. WonderFi's executive team and Board of Directors have an established track record in finance and crypto. WonderFi's core team of engineers and technologists believe that everyone should have equal access to finance, and are aligned in the mission to empower people around the world to access finance in a simple, smart and secure way. For more information, visit www.wonder.fi.
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such "could", "intend", "expect", "believe", "will", "projected", "estimated", or variations of such words.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of the Company to work effectively with its partners and changes in general economic, business and political conditions. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein. A more fulsome description of risk factors that may impact our business, financial condition and results of operation is set out in our management's discussion and analysis and financial statements for the for the period ended June 30, 2022, as well as our annual information form, available on SEDAR.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
The Toronto Stock Exchange has not approved or disapproved of the information contained in this release.
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