If you’re into the world of cryptocurrency, you’ve probably heard about the importance of trust. With so many exchanges handling your hard-earned digital assets, how do you know your funds are safe? That’s where a proof of reserves (PoR)​ audit comes in, and recently, Hacken, a leading security firm, teamed up with Backpack Exchange to deliver just that. Let’s break down this exciting update from their X thread posted on July 31, 2025, and see what it means for the crypto community.

What’s the Big Deal with This Audit?

The thread, shared by Hacken at 10:16 AM UTC, announces the completion of a PoR audit for Backpack Exchange, a regulated crypto platform operating under the Dubai Virtual Assets Regulatory Authority (VARA). This audit, conducted as of June 30, 2025, is all about verifying that Backpack has enough assets to cover user liabilities—think of it like a financial health check for the exchange. The goal? To build trust and transparency, especially in a space where scams and mismanagement have made headlines.

The first image in the thread sets the tone with a sleek design featuring the Hacken and Backpack logos, alongside a date stamp. Check it out:

Key Findings That Stand Out

Hacken didn’t hold back on the details, and the audit results are impressive. Here’s what they found:

• All 70+ Assets Covered: The audit looked at a wide range of assets, including BTC, ETH, SOL, and SUI, ensuring nothing was left unchecked.
• Reserves Exceed Liabilities: Backpack’s reserves are over 100% of its user liabilities—meaning they’ve got more than enough to cover everyone’s funds.
• No Discrepancies: A clean bill of health! The audit confirmed that Backpack’s reserves fully match their user obligations.

This level of transparency is a big win, especially when you consider how past exchange failures (like FTX) shook the industry. The fourth image in the thread highlights these findings visually:

How Did They Do It?

The methodology behind this audit is just as interesting. Hacken used proprietary PoR tools and cryptographic proofs to validate Backpack’s reserves. They also got a full list of in-scope addresses and even did a live walkthrough of custodian-held funds. This hands-on approach, covering 70+ assets across major blockchains, sets a high standard for crypto audits. The fifth image breaks down the scope and methodology:

Why This Matters for Crypto Users

Trust is everything in crypto, and a PoR audit like this helps bridge the gap between users and exchanges. By showing that Backpack’s reserves are solid, Hacken’s work could encourage more people to trade confidently on the platform. Plus, with Backpack being a regulated exchange under VARA, this audit aligns with global efforts to make crypto safer and more accountable.

The thread also teases a full report, which you can dive into on Hacken’s website. The second image sums it up with a catchy phrase: “Trust begins with Proof of Reserves”:

What the Community Is Saying

The X replies are buzzing with excitement. Users like @madgeolier and @Diptabd1 are hyping Backpack, calling it “on top” and praising the comprehensive methodology. Others, like @SecurityElena, are giving a thumbs-up to the team effort. It’s clear this audit is resonating with the community, especially those who value security in the Web3 space.

Looking Ahead

This audit isn’t just a one-off—it’s part of Backpack’s ongoing commitment to transparency, backed by their history of audits (two so far, according to their website). With a 24-hour spot trading volume of $76.67 million and support for platforms like Ethereum, Backpack is positioning itself as a player to watch. For meme token enthusiasts and blockchain practitioners, this kind of news is a reminder of how security and innovation go hand in hand.

So, what do you think? Are you more likely to trust an exchange with a solid PoR audit? Drop your thoughts in the comments, and stay tuned to Meme Insider for more updates on the latest in crypto and meme tokens!