MyCryptoWallet Crashes Leaving Bitcoin Traders Stranded

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This illustrative photo shows a physical banknote and knockoffs of bitcoin coins.Photo: Ozan Kose / AFP (Getty Images)

MyCryptoWallet, an Australia-based cryptocurrency exchange that allowed users to buy and sell coins like ether and bitcoin, has collapsed and left users without access to funds, according to multiple reports. The company on Friday brought in a firm called SV Partners to liquidate what’s left of the swap and deal with creditors, according to the Australian Financial Review.

MyCryptoWallet, founded by Jaryd Koenigsmann, 28, in 2017, previously claimed to have 20,000 users, although it is not clear how many people might have actively had money in the exchange when it collapsed. . It’s also unclear how much money is gone for users and if they will ever see it again. But let’s just say it doesn’t look good.

The cryptocurrency industry in Australia is largely unregulated, much like the United States. But if you take a look at the MyCryptoWallet website, there is a curious claim made in the lower right corner. A small emblem appears that says, “Secure. Regulated. Assured. ”These claims all seem to be lies, as far as Gizmodo can tell.

Screenshot: MyCryptoWallet.com

SV Partners plans to release its first credit report on the company on December 17, which should provide more information on what is under the hood, according to Australian agency ABC News. Many Australian politicians have called for the crypto industry to be regulated, but this regulation would come too late for MyCryptoWallet users.

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There were several signs that MyCryptoWallet was not doing well over the past year. Users were often unable to access their bitcoin, according to a Sydney Morning Herald report in April, but it should be noted that this is an extremely common complaint in the crypto world. Consumers who use Binance, for example, have filed complaints with the Securities and Exchange Commission on several occasions, alleging that Binance allows them to deposit money, but not withdraw it.

From the Sydney Morning Herald in April:

Toni Walker, a 63-year-old investor who bought $ 1,500 worth of cryptocurrency on MyCryptoWallet over the past four years, said she wanted to withdraw her funds earlier this year when they doubled, but didn’t could not access the exchange.

“I would love to have the chance to get my funds back, but I don’t have a good feeling about it,” she said.

MyCryptoWallet did not respond to a request for comment early on Tuesday.

The price of bitcoin has plunged in recent days, with the price falling to around $ 45,000 over the weekend. The price rallied a bit early on Tuesday, hovering around $ 51,000, but still a long way from a recent all-time high of over $ 68,000 on November 10.

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