BENGALURU: Crypto investing app CoinSwitch on Friday said it holds Rs 1,083.45 crore value of user assets as of January 6, 2023. Of this, assets held on the wallets is about Rs 933.83 crore.It said users can independently verify holdings. The crypto investing app released its Proof of Reserves so as to be more transparent and gain trust of investors following the collapse of FTX. The crypto market had crashed and set off a chain of liquidations. Firms like Voyager and Celsius went bankrupt and vauld suspended withdrawals. The crash and the contagion that followed, wiped out over $300 billion in value and shook the trust of a large number of crypto investors.
“CoinSwitch is trusted by 19 million users for their investments and we have always exercised abundance of caution when it comes to security,” it said, adding 85% of crypto assets are on custodial wallets, and the remaining on exchanges. It holds more crypto assets than its users. On BTC (Bitcoin), the ratio of its holdings against users is 1.71:1. Its ETH holdings are also higher than user holdings, it said.
As per CoinSwitch, it has enough in bank accounts to fulfil INR withdrawals by users 24×7. In October 2021, it closed a $260 million Series C funding from Andreessen Horowitz (a16z), Coinbase Ventures and existing investors Paradigm, Ribbit Capital, Sequoia Capital India and Tiger Global at a valuation of $1.9 billion.
CoinSwitch mentioned in the report that it never had exposure to FTX, its native token FTT, or the sister trading firm, Alameda Research. FTT token was never listed on CoinSwitch app, it said. Recently, it announced the company is diversifying into other asset classes. It is now transitioning from a single-asset app to a wealth-tech destination.