Our statement on the FTX collapse
To our users,
The past week has been, to put it lightly, a difficult one for crypto.
The collapse of FTX is a seismic event that has placed and will continue to place significant strain on the international cryptocurrency market. Millions of people have lost money and crypto has suffered a reputational blow that will be difficult to overcome.
CoinJar held a small account balance with FTX to facilitate our OTC trading desk operations and client trades. This trading balance represented less than 1% of our gross assets and did not include any customer funds. Appropriate hedging activities have been conducted to ensure that there is no further impact to our balance sheet. We have no exposure to FTT or Alameda Research.
CoinJar is a full reserve crypto platform and our customer assets are held 1:1 on an individual cryptoasset basis. At all times, at least 90% of our customer assets are held in offline cold storage or with our custodians, BitGo and Fireblocks. CoinJar will never lend out or otherwise use your cryptoassets unless directed to by you. We continually monitor our internal balances to ensure that customer assets are accounted for separately from our operational funds.
CoinJar is a fully fledged exchange with our own order book, custody procedures and settlement processes – not a brokerage for unregulated international players. We operate in two highly sophisticated markets – Australia and the UK – and are registered with AUSTRAC and the UK’s Financial Conduct Authority (for AML purposes).
At CoinJar, we are proud to be one of the world’s longest-running cryptocurrency exchanges. It’s a record we’ve come to through considered risk management strategies and total dedication to the security of our customer’s assets. That hasn’t changed in the good times and it won’t change in the bad.
We believe in the cryptocurrency future and hope that we will continue to be part of your crypto journey.
CoinJar’s digital currency exchange services are operated in Australia by CoinJar Australia Pty Ltd ACN 648 570 807, a registered digital currency exchange provider with AUSTRAC; and in the United Kingdom by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
Like all investments, cryptoassets carry risk. Due to the potential volatility of the cryptoasset markets, the value of your investments may fall significantly and lead to total loss. Cryptoassets are complex and are unregulated in the UK, and you are unable to access the UK Financial Service Compensation Scheme or the UK Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits.