Provider by region EU Trek Labs Europe Ltd, "Trek Technologies" SIA UAE Trek Labs Ltd FZE US Trek Labs, Inc.
Risk warning. Not financial advice. Crypto is highly volatile and may drop in value significantly. You may lose the amounts you invest and your investments do not benefit from any form of financial protection.
Backpack Exchange publishes a proof of reserves every day that is independently verified by OtterSec and reconciled internally every 10 minutes, covering spot balances, margin positions and unrealised PnL. This page lists what that proves, what it does not, and which security facts Backpack has not yet published.
No page can settle that question for you, and this one does not try. It lists the claims about Backpack that have a source, who issued each one and when it was read. Two labels show how far each claim goes. "Published on a register" means the regulator's own record was opened. "Stated by Backpack" means the only source is a Backpack page.
| Claim | Evidence | Issuer | Date | Status |
|---|---|---|---|---|
| A proof of reserves is published every day | Backpack's Learn article says the proof is published daily and independently verified by OtterSec. The home page carries the same verifier label. | Backpack; verifier named: OtterSec | Read | Stated by Backpack |
| Balances are reconciled every 10 minutes | The same article describes an internal reconciliation that runs every 10 minutes. | Backpack | Read | Stated by Backpack |
| Client assets are segregated | The same article says user assets are kept apart from platform assets under more than one regulatory framework. | Backpack | Read | Stated by Backpack |
| EU investment firm licence | Trek Labs Europe Ltd, CySEC licence no. 273/15, in the CySEC register entry. | CySEC | Licence dated ; read | Published on a register |
| EU crypto-asset service provider authorisation | "Trek Technologies" SIA, LEI 6488C2PNI17093U2YA18, in the ESMA interim MiCA register. No licence number is published. | Latvijas Banka, through the ESMA register | Authorisation dated ; read | Published on a register |
| Dubai spot exchange licence | Trek Labs Ltd FZE, VASP Licence VL/23/07/001 for Exchange Services, status active, in the VARA public register (search "Trek Labs"). | VARA | Issued ; read | Published on a register |
| US money services business registration | Trek Labs, Inc., FinCEN registration no. 31000339714338, as listed on Backpack's US licences page. Not checked in the FinCEN registrant search. | Backpack, naming FinCEN | Read | Stated by Backpack |
| A security.txt file is published | A 216-byte file at backpack.exchange/.well-known/security.txt. | Backpack | Read | Stated by Backpack |
Insurance cover, security certifications, the cold-storage share, penetration-test results, a bug bounty programme and an incident log were not found on the Backpack pages read on 6 October 2026, so this page says nothing about them.
A proof of reserves sets what an exchange holds against what it owes its clients on a given day. The steps below are Backpack's own description of its process. The general method and its limits are explained in the guide on what a proof of reserves does and does not prove.
Backpack says it publishes a proof of reserves every day and, between publications, reconciles balances internally every 10 minutes. Its home page describes the result as a way to track assets and liabilities in real time. The proof is shown on the reserves page of the main site, backpack.exchange/reserves.
Backpack names OtterSec as the independent verifier. OtterSec describes itself as a provider of security audits for blockchain projects. The sources read for this page contain no OtterSec report, link or date for a specific day's proof, so the verification is recorded here as Backpack's statement.
According to Backpack, the proof covers spot balances, margin positions and unrealised PnL, and it is built with zero-knowledge proofs. A zero-knowledge proof lets one party show that a statement is true without revealing the data behind it. Both terms are in the glossary: Merkle tree and zero-knowledge proof definitions.
No reserve ratio and no report link can be quoted on this page. When the live reserves page was read on 6 October 2026, its server HTML held no figures; the numbers appear only after scripts run. The sources read do not document how a client can check that their own balance is included. A proof of reserves describes one day. It does not remove market risk, and it says nothing about lending and borrowing risks.
More background on how a proof of reserves works is in the security guides on Backpack Learn.
Backpack's Learn article on the exchange, read on 6 October 2026, says: "User assets are segregated from platform assets, subject to requirements across multiple regulatory frameworks."
Segregation means client assets are held apart from the company's own. It is not insurance, and it does not protect against a fall in prices. Backpack's footer adds that it is a financial services platform and not a bank, and that banking services come from its bank partners.
Custody architecture, key management and the split between cold and hot wallets are not described in the sources read, so nothing is written about them here.
Fake sites and accounts copy an exchange's name and design to collect sign-in details. Check the address in your browser before you sign in. Backpack uses these domains:
Apps and social accounts are on the contact page, with the official domains and how to report a problem.
For vulnerability reports, Backpack publishes a security.txt file, the standard place for a site to say how researchers should reach it: backpack.exchange/.well-known/security.txt.
Account security settings are not described in the sources read, so none is listed here.
In November 2022 Backpack lost 88% of its corporate treasury on FTX, according to the timeline on its own About page (read 6 October 2026). That was before the exchange existed: Backpack Exchange was incorporated in March 2023 and opened in beta in November 2023.
The entry describes company funds held at another exchange. It is listed here because a reader weighing counterparty risk should know it.
Backpack has published no incident log in the sources read, and this page makes no statement about whether a security incident has occurred.
Oversight differs by company and by product. No single licence covers every product in every country.
Backpack is provided by named companies whose licences and registrations can be checked. Trek Labs Europe Ltd holds CySEC licence no. 273/15. "Trek Technologies" SIA is in the ESMA interim MiCA register with an authorisation date of 27 May 2026. Trek Labs Ltd FZE holds VARA licence no. VL/23/07/001 for spot trading, and Trek Labs, Inc. states FinCEN registration no. 31000339714338. Each covers certain products and regions only.
OtterSec, according to Backpack. Backpack's Learn article says the daily proof of reserves is independently verified by OtterSec, a firm that describes itself as a provider of security audits for blockchain projects. The sources read for this page include no OtterSec report or link for a specific day, so the claim is recorded as Backpack's statement.
Every day, according to Backpack. Its Learn article says a proof of reserves is published daily and that balances are reconciled internally every 10 minutes between publications. This page gives no date for the latest proof, because the live reserves page shows its figures only after scripts run.
Spot balances, margin positions and unrealised PnL, according to Backpack, which says the proof is built with zero-knowledge proofs. A proof of reserves describes one day. It is not a forecast, no reserve ratio is quoted on this page, and it does not remove the risk that prices fall.
Start with Backpack's security.txt file at backpack.exchange/.well-known/security.txt. A security.txt file is the standard place where a site says how security researchers should report a vulnerability. For an account problem that is not a vulnerability, use the support routes on the contact page instead.
Other topics are in the account, deposit and support questions. If a problem is not resolved, see what to do if something goes wrong. For information only. Not investment advice.
The guide explains how a proof of reserves is built, what a reader can check and where the method stops.