Australian Crypto Exchange Sinks After Users Sore Complaints

Australian digital currency trading exchange, MyCryptoWallet has probably gone under after a number of the platform’s customers complained of being unable to access their funds. As reported by local news channels, the exchange is battling allegations of missing funds, with hundreds of thousands of dollars in crypto assets owed to users of the platform.

The reports have it that SV Partners have been contracted to serve as the official liquidator of the platform. The issues bedeviling the exchange dates back to April as pointed out by The Age and The Sydney Morning Herald. The investigation into the crypto trading platform became public knowledge owing to the number of complaints received by the Australian market regulator ASIC.

The liquidating partner will be tasked with the sales of the proprietary intellectual properties of the exchange. Despite the nationally publicized news, the exchange’s spokeswoman claimed that the trading platform is operational and that the news being published was false news.

“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,” the spokeswoman said at the time of the investigation.

MyCryptoWallet is not the first Australian exchange to go under. Trading platform ACX entered into a voluntary administration earlier this year after it was unable to repay the $21 million it was owing creditors.

Exchange Collapse Sends Wrong Signals

Many governments around the world are very skeptical of permitting digital currencies to thrive on their shores. Due to the innovative technological position of most cryptocurrencies, and the stakeholders in the space, many regulators have permitted a number of trading platforms to do business, albeit under tight conditions.

The negative development of exchanges getting bankrupt based on various reasons is an avenue for even pro-crypto governments like Australia to approach the space with a harsh stance. The Australian government is set to usher in a set of regulations to govern the crypto ecosystem, and investor protection may be a major mainstay.

Exchanges running into trouble are indicative of the loopholes that are largely still inherent in the broader cryptocurrency ecosystem and may form a slight setback for the growth the industry is trying to chart.