Crypto trading platform myCryptoWallet collapses

 Chaos as Australia's most visible crypto trading platform COLLAPSES, leaving furious users out of pocket by tens of thousands of dollars - and no trace of the entrepreneur behind it.

  • MyCryptoWallet, a cryptocurrency trading platform, has been liquidated, with users owed money.
  • Jaryd Koenigsmann, the company's founder, has not commented on the ongoing sagas.
  • In 2019, users began to complain about being unable to withdraw or transfer funds.

Crypto trading platform myCryptoWallet collapses

A well-known cryptocurrency trading platform has gone bankrupt, infuriating hundreds of traders who have lost tens of thousands of dollars.
The transaction myCryptoWallet, based in Melbourne, has gone bankrupt, and its tattooed founder, Jaryd Koenigsmann, has remained silent about the company's long-running saga.

In a new notice published by the Australian Securities and Investments Commission, Terry Grant Van der Velde of Brisbane insolvency specialist SV Partners has been named liquidator.

There is no evidence that Mr. Koenigsmann is to blame for users' missing funds.

myCryptoWallet was founded in 2017 as a digital marketplace for buying and selling cryptocurrency, but ASIC began investigating the matter in 2019 after user complaints began.

Only three months after its high-profile launch, it claimed to have more than 20,000 users.

    myCryptoWallet founder

    The transaction MyCryptoWallet, based in Melbourne, has been placed in liquidation, and its tattooed founder, Jaryd Koenigsmann, has remained silent about the company's long-running dramas, though there is no suggestion he is to blame for missing funds.

    myCryptoWallet was founded in 2017 as a digital marketplace for buying and selling cryptocurrency, but it was investigated by ASIC after user complaints began in 2019.

    Traders reported significant losses, including a grandfather who claimed to have $40,000 in MyCryptoWallet but was unable to access it.

    '$40,000 grand (sic) invested, and it's all locked in that exchange.' 'The sad thing is that no government department cares,' he wrote on Twitter.

    Another irate user claimed to have received a refund of $756 but was still owed $5,000.

    Aly Sarfaraz tweeted his month,  to the company, pleading for 'assistance' in withdrawing his funds because the company's normal systems would not allow the transaction.

    'Hello, could you please assist me?' 'I've returned to my crypto wallet after a year and need to withdraw money,' Mr. Sarfaraz wrote.

    'It requests authorization, but the code never arrives.' I've tried to contact you for a couple of days now, but no one has responded.'

    myCryptoWallet company answers

    In April 2021, the company tweeted that it had resolved issues and 'finalized any pending account issues,' which frustrated traders immediately refuted.

    The demise of MyCryptoWallet, which was launched with multiple media appearances by Mr. Koenigsmann, has heightened concerns about the unregulated nature of the crypto market.

    The exchange suspended its services twice in 2019 due to reported losses, including the suspension of its myCryptoCard program after terminating a contract with a “technology custodian partner”.

    National Australia Bank closed myCryptoWallet's bank accounts in January 2019, but they were quickly reinstated.

    In addition, the company began to reduce customer service hours, infuriating users and was also said to have 'gone dark' for nearly a year due to various difficulties.

    In July 2019, he sent an email with a kind of explanation to unfortunate users, blaming the difficulties that accessing funds on his partner of deposit technology.

    'Unfortunately, our deposit technology partners ignored calls from our CEO regarding user deposits that had not cleared to myCryptoWallet's bank account,' read an email to users.

    'We received a response from our deposits technology partner after business hours on Friday, July 5th, which was a terminated contract, leaving myCryptoWallet at a significant loss.'

    myCryptoWallet first launched

    MyCryptoWallet claimed to be "Australia's most advanced digital currency solution" and "Australia's first fee-free platform" when it first launched.

    In 2019, Mr. Koenigsmann also announced the launch of MyNewPet, a digital pet classified service.

    It quickly grew to over 1,000 users thanks to a selling point that allowed it to instantly verify the identity of buyers and sellers.

    However, it ran into financial difficulties and was liquidated in September 2020 with debts totaling $43,138.

    MyCryptoWallet's demise comes as cryptocurrency trading in Australia continues to boom.

    ATO Statistics

    • According to the ATO, another 200,000 Australians will become cryptocurrency investors in 2021.
    • According to the ATO, more than 800,000 people are transacting in cryptocurrency, up from an estimated 600,000 in 2020.

    'We are continuing to see an increase in the number of Australians participating in the cryptocurrency market,' said an ATO spokesman.

    To ensure that investors pay the correct amount of tax, the ATO compares data from cryptocurrency service providers to individual tax returns.

    In the midst of the global craze for digital art, music, gaming items, and other collectibles, there are no separate figures available for non-fungible tokens (NFTs).

    'The tax treatment of NFTs is based on the same principles as cryptocurrencies,' said the spokesman.

    According to investment information firm Invezz, the global NFT market value is expected to reach US$10 billion ($A14 billion) by the end of this year, up from US$338 million in 2020.

    In addition to receiving transaction data from cryptocurrency exchanges and banks, the ATO shares information with the financial intelligence agency Australian Transaction Reports and Analysis Centre (AUSTRAC) and foreign tax authorities.

    'The majority of Australians want to pay the correct amount of tax and report their gains and losses correctly,' according to an ATO spokesman.