Wed. Jan 26th, 2022

Troubled cryptocurrency exchange MyCryptoWallet has collapsed after a flurry of complaints from users and allegations of lack of funds, with the company likely to owe creditors hundreds of thousands of dollars in cryptocurrencies.

Last Friday, the insolvency firm SV Partners was appointed liquidator of the company. MyCryptoWallet was founded in 2017 by Jaryd Koenigsmann and acts as a trading platform that allows users to buy, sell and exchange currencies such as Bitcoin, Ethereum and Ripple.

A screenshot of the MyCryptoWallet website as it appeared on April 1st.

A screenshot of the MyCryptoWallet website as it appeared on April 1st.

However, a study of Aging and Sydney Morning Herald in April, the stock exchange barely worked, with several users reporting problems accessing or withdrawing their funds stored on the stock exchange, with some saying their coins had disappeared completely. Aging and Sydney Morning Herald does not suggest that Mr Koenigsmann is responsible for the users’ lack of funds.

Several complaints were lodged with the company regulator ASIC, which confirmed that it was assessing the alleged problems. Following the survey, some users reported that they had been able to contact the exchange to retrieve some of their funds, but the majority were still unable to access the platform.

Friday’s collapse probably indicates that MyCryptoWallet has not been able to overcome the problems plaguing it and has instead chosen to liquidate the company. It is not known what return, if any, affected creditors will receive. A spokesman for SV Partners has urged everyone affected by the collapse to contact the company.

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This is the second company run by Mr Koenigsmann to collapse in recent years, with the 28-year-old’s former company, pet ad service MyNewPet, collapsing last July. Koenigsmann could not be reached for comment.

MyCryptoWallet is not the first Australian cryptocurrency exchange to collapse, with the trading platform ACX entering voluntary administration earlier this year, owing creditors $ 21 million.

These errors are indicative of the risks that investors face when choosing to invest in crypto locally, as Australian stock exchanges are currently only required to have the most rudimentary regulation that only needs to be registered with the watchdog AUSTRAC for financial crime for the purpose of combating money laundering.

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