Bitcoin, ETH price: myCryptoWallet collapse sees liquidators called in

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Crypto traders have reportedly lost thousands of dollars following the collapse of another leading Australian trading platform.

Liquidators have been called in to liquidate another leading Australian crypto trading platform, with enraged clients reportedly losing thousands of dollars after being unable to access their accounts.

Melbourne-based myCryptoWallet – which once boasted of having 20,000 customers – on Friday called on administrators to close the book on a troubled existence that has featured technological setbacks and a period of inactivity following a dispute with the big bank NAB.

ASIC documents show myCryptoWallet and its 28-year-old founder Jaryd Koenigsmann appointed Brisbane liquidators SV Partners to liquidate the company on Friday, making it the second crypto firm in two months to go bankrupt .

Another Melbourne company, Blockchain Global, collapsed in October and owes investors $ 21 million.

The Australian reported on Tuesday that angry myCryptoWallet customers were unable to access their funds, with some taking to social media platforms claiming a loss of $ 40,000.

MyCryptoWallet was launched in late 2017 as a platform for users to buy, sell, and trade assets like Bitcoin, Ethereum, and Ripple.

He once said he had 20,000 customers, but a series of post-launch issues left users frustrated.

NAB froze the company’s accounts in early 2019 following litigation, although myCrypto “made absolutely no attempt to give us the reason or justification for closing our business bank account.”

MyCryptoWallet withdrawals have also been put on hold for a period after problems with its technology partners. Many users have reported being unable to access their funds or trade cryptocurrencies as the market hits record highs.

Incidentally, the collapse of myCryptoWallet comes as bitcoin plunges from an all-time high.

The world’s largest cryptocurrency was worth $ 91,000 just over a month ago, but has since lost 30% of its value due to fears about the emergence of the Omicron Covid-19 variant.

Bitcoin was trading at $ 69,000 on Tuesday morning.

A Senate inquiry into the crypto industry in October recommended that exchanges such as myCryptoWallet be regulated to provide insurance to investors.

The Reserve Bank of Australia also warned investors last month against the build-up of trendy “memes”, saying there are “considerable risks” associated with cryptocurrencies.

Australian Securities and Investments Commission chairman Joe Longo said consumers were “on their own” due to limited regulatory protections.

The implications for consumers are potentially huge, ”he said, reported to the Sydney Morning Herald.

“It’s almost an article of faith that no one should invest in something they don’t understand.

“Who among us can say we really understand cryptoassets and cryptocurrencies? Mr. Longo said at the top of the financial magazine’s super and wealth.

He said investors should view crypto with great caution, citing the maxim “Don’t put all your eggs in one basket.”

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