Deribit Transfers 90% of Customer Funds to Coinbase – But Transparency Suffers

I still remember the days when crypto exchanges like FTX or Celsius collapsed, leaving countless users losing their life savings. Those events taught us just how critical transparency and verifiability are—and that’s exactly where I see a problem with Deribit.
The exchange, which previously set itself apart with daily Proof-of-Reserves (PoR) checks, abruptly discontinued this practice in late September 2023. At the same time, it transferred roughly 90% of customer funds to Coinbase. At first glance, this seems like a security measure: Coinbase is, after all, one of the most established and regulated exchanges in crypto. But honestly—why would an exchange like Deribit, which once placed such high value on transparency, suddenly abandon these checks?
Proof of Reserves: A Necessity, Not a Luxury
PoR isn’t a luxury in crypto—it’s a necessity. After the collapses of FTX and others, users demanded certainty: Are my funds really there? Or are they being used elsewhere? For many, daily checks were a crucial anchor of trust. That Deribit is now dropping this practice is a bold move—especially since it’s simultaneously shifting its funds to another exchange.
Why Coinbase? And Why Now?
Of course, Coinbase is a trustworthy partner. But why not simply continue conducting its own PoR checks? The transfer of funds could be interpreted as an admission that Deribit no longer has enough confidence in its own security. Or perhaps regulatory requirements played a role—though who knows for sure?
What really concerns me is Deribit’s reasoning. Instead of public, daily ch



ecks, the exchange is now relying on internal audits and periodic reports from the VARA (Virtual Assets Regulatory Authority). Does that sound like more transparency to you? To me, it looks like a step backward.
Skepticism Is Understandable
Especially in Europe, where MiCA regulations are about to take effect, transparency should be a given. Yet Deribit is doing the opposite: making things less public, less verifiable. And this in an industry that already faces enough distrust.
What Does This Mean for Users?
If you’ve kept your funds on Deribit, you should ask yourself: What happens if Coinbase or Deribit runs into trouble? While daily checks weren’t a perfect guarantee, they provided a layer of security. Now, users must rely on internal audits—and those aren’t publicly accessible by design.
A Crisis of Trust?
I understand the logic behind shifting the funds. Coinbase is safer, so why not store them there? But abandoning PoR checks raises questions. Is Deribit really willing to sacrifice transparency just to bypass regulatory hurdles? Or are there other reasons we don’t yet know?
One thing is clear: In an industry repeatedly rocked by fraud and collapses, transparency isn’t a luxury—it’s a matter of survival. Reducing it risks losing user trust—and that’s something extremely difficult to regain.
Conclusion: Deribit Has Sacrificed Credibility with This Move
It remains to be seen whether the exchange can find ways to restore trust. Until then, as a user, I’d think carefully about whether to keep my funds there—or take extra precautions to stay secure.