Australian crypto exchange myCryptoWallet has tanked following a wave of complaints by users and allegations of missing funds, potentially leaving behind countless customers deprived of access to their crypto assets.
Insolvency firm SV Partners has been appointed the liquidator of the troubled business, The Sydney Morning Herald reported.
The exchange’s website, which remains active despite its financial woes, advertises myCryptoWallet as “Australia’s First Zero Fee Cryptocurrency Exchange,” and encourages users to buy, sell and trade cryptocurrencies such as bitcoin (BTC), ethereum (ETH), and litecoin (LTC), among others, by using its services.
The website claims that the Australian exchange has served some 30,000 customers, exchanging about AUD 20m (USD 14.2m) worth of cryptocurrency, and providing support to users based in 12 countries.
Despite these claims, an investigation carried out by Australian paper The Age and The Sydney Morning Herald last April revealed that myCryptoWallet was barely functional, and a number of users have reported issues with accessing or withdrawing their funds.
Some of the company’s customers claimed their cryptocurrency had disappeared entirely.
As a result, dissatisfied customers have filed numerous complaints with the country’s financial regulator, the Australian Securities and Investments Commission (ASIC). The agency confirmed that it was assessing the flagged issues, and, following its investigation, some users said they were able to retrieve some of their funds from the exchange.
This, however, was not the case for the majority of the company’s customers who still cannot access their assets.
Set up in 2017 and based in Melbourne, the crypto exchange was established by local entrepreneur Jaryd Koenigsmann.
The latest development marks another collapse of an Australian crypto exchange. Earlier this year, Blockchain Global (BGL), the parent company of local crypto exchange ACX, entered into voluntary administration while owing its creditors some AUD 21m (USD 14.9m), The Australian Financial Review reported.