MyCryptoWallet Collapses — Users May Lose Funds
Bitcoin

MyCryptoWallet Collapses — Users May Lose Funds

6 months ago

MyCryptoWallet, which was founded in 2017 by Jaryd Koenigsmann, had previously claimed that it had more than 20,000 users.

MyCryptoWallet Collapses — Users May Lose Funds

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A crypto exchange in Australia has collapsed — meaning users may never get their funds back.

MyCryptoWallet had been troubled for some time, and had been described as the country's "first zero-fee" exchange — a place where consumers could buy, sell and trade Bitcoin, Ether, XRP and Litecoin.

But back in April, an investigation by two Australian newspapers revealed that the company had faced a barrage of complaints. While some users were unable to withdraw their funds altogether, others saw their crypto vanish into thin air when they attempted to make a transfer.

When approached about these concerns, MyCryptoWallet claimed it was a "negative shill campaign" — and insisted that it hadn't received any complaints of issues with its service.

Liquidation proceedings have now begun, and the insolvency firm SV Partners is urging anyone who has been affected to get in touch. 

MyCryptoWallet, which was founded in 2017 by Jaryd Koenigsmann, had previously claimed that it had more than 20,000 users.

Given how this is the second Australian cryptocurrency exchange to collapse in as many months, speculation is growing that the country may attempt to tighten regulations in order to tighten regulations.

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A Messy Situation

Although MyCryptoWallet's Facebook and Twitter accounts have now been taken down, the exchange's official website is still active at the time of writing.

CoinMarketCap attempted to register for an account to see whether the platform was still active, but couldn't complete the process.

Back in April, users complained that they hadn't received any correspondence from the company at all, while others said they "don't have a good feeling" about getting their funds back. 

The Australian Securities and Investments Commission had been looking into the allegations.

Elsewhere in Australia, a convicted conman who is accused of stealing $1.2 million in cryptocurrency has been arrested — six-and-a-half months after being declared a fugitive.

Peter Foster had been ordered to surrender his passport, stay off the internet and wear an electronic tag as part of strict bail conditions, but failed to appear in court back in May.

The 59-year-old was detained by Australian Federal Police in a town that lies about an hour away from Melbourne.

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