The Proof of Reserves process is reasonably simple. There is no fancy Merkle tree or any other unnecessary cryptographic complexities. All BitMEX has done here is publish a basic list of the reserves. The list contains all the Bitcoin we have under our custody on behalf of our clients, it is as simple as that. The file is 199MB large and can be downloaded here:Download HereMore concisely, the list contains Bitcoin addresses and the Bitcoin balance held at each address at the snapshot point. The list also contains the execution scripts for each UTXO under custody; these execution scripts include the BitMEX public keys. This therefore proves that the company is able to access all the funds, assuming the company has access to the private keys associated with the public keys. It is proved every day that BitMEX does indeed have access, when the company conducts withdrawals. Therefore, the list can be considered as a proof of company reserves and proof that the funds are spendable.
