Failed Aussie crypto exchange may have been insolvent for years, liquidator says

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Mr van der Velde has reported the alleged offenses to corporate regulator ASIC, which has previously indicated it had received a number of complaints about the exchange. The liquidator is also asking creditors to fund a public examination of Mr Koenigsmann in court to uncover more information about MyCryptoWallet’s affairs.

The liquidation process has also uncovered numerous voidable transactions conducted by the company – transactions that are deemed unfair, preferential, uncommercial or unreasonable. These include over 340 transactions made by the company in 2017 and 2018 to “various unknown accounts”, valued at over $3.4 million.

MyCryptoWallet has had well-documented disputes with major Australian banks, sending an email to users in early 2019 that said crypto withdrawals were disabled due to NAB closing its business banking account without notice, a move the company slammed as “unethical”.

However, this was nearly a year after the company’s NAB account had been shut, with the creditors report showing MyCryptoWallet’s NAB account was closed in March 2018.

MyCryptoWallet has also failed to file business activity statements (BAS) and income tax returns to the tax office since at least 2017, the liquidator claims, warning it could have “substantial debts” owing to the tax office.

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SV Partners has been pursuing a sale of the exchange and its crypto assets, with Mr van der Velde saying he has received and was assessing a number of offers for its infrastructure and cryptocurrency assets, which include Bitcoin, Litecoin, Ethereum and Ripple.

At this point, the liquidator thinks it is likely creditors will receive a return on their funds, however how much and when is still unknown.

During the Sydney Morning Herald and The Age’s initial investigation in April, a spokeswoman for MyCryptoWallet accused this masthead of engaging in a “negative shill campaign” and maintained the company was “completely unaware” of any issues with the exchange.

“It is quite upsetting to hear you are creating an article about false negativity regarding MyCryptoWallet rather than the amazing ground-breaking blockchain technology we offer Australian users,” she said at the time.

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