Crypto Exchange MyCryptoWallet Goes Bust, Leaves Investors Nowhere

According to various sources, MyCryptoWallet, an Australian-based cryptocurrency exchange that enabled users to purchase and sell currencies such as ether and bitcoin, has crashed, leaving customers without access to their assets. As per the Australian Financial Review, the business hired SV Partners on Friday to liquidate the exchange’s remaining assets and deal with creditors.

MyCryptoWallet, created in 2017 by 28-year-old Jaryd Koenigsmann, formerly claimed to have 20,000 members, however it is unknown how many individuals had money in the exchange at the time of its failure. Additionally, it is unknown how much money consumers lost and if they will ever see it again. However, let us just say that things do not seem to be going well.

In Australia, like in the United States, the cryptocurrency business is mainly uncontrolled. However, if you visit MyCryptoWallet’s website, you’ll notice an odd assertion in the bottom right-hand corner. A little logo with the word “Secure, Licensed, Insured” emerges. As far as we understand, all of those assertions seem to be false.

According to Australia’s ABC News, SV Partners aims to release its first credit information on the firm on December 17, which should give further details about what’s going on behind the scenes. Numerous Australian lawmakers have proposed for regulation of the cryptocurrency business, however such legislation would arrive too late for MyCryptoWallet customers.

Numerous indicators indicated that MyCryptoWallet was not performing well during the last year. As per a storey from the Sydney Morning Herald in April, users were frequently unable to gain control over their bitcoin, however it should be emphasised that this is an exceedingly typical issue in the realm of cryptocurrency.

Consumers who use Binance, for example, have filed many complaints with the Securities and Exchange Commission stating that the platform permitted them to deposit money but not withdraw it. In April, the Sydney Morning Herald reported:

Toni Walker, a 63-year-old investor who purchased $1500 worth of cryptocurrencies on MyCryptoWallet over the previous four years, claimed she attempted to withdraw her cash early this year but was unable to do so due to the exchange’s closure.

“I would appreciate the opportunity to collect my monies, but I have a bad feeling about it,” she said. Bitcoin’s price has plummeted in recent days, falling to under $45,000 over the weekend. The price rose somewhat early Tuesday, lingering around $51,000, but is much below the previous all-time peak of almost $68,000 on November 10.