Investors have uncovered the chaos behind the scenes in the lead-up to the collapse of Australian crypto trading platform myCryptoWallet.
Dozens of unanswered messages, customer support tickets were ignored and thousands of investments were prevented from being withdrawn – a reality for some users of a major Australian crypto trading platform before its spectacular collapse.
Melbourne-based myCryptoWallet called on administrators on Friday To close the book on a troubled existence, which included technical setbacks and a period of inactivity following a dispute with major bank NAB.
The liquidation of the trading platform – which once claimed 20,000 clients – has left some investors with thousands of dollars out of pocket.
MyCryptoWallet was launched in late 2017 as a platform that lets users buy, sell and trade assets such as Bitcoin, Ethereum and Ripple.
Customers say the platform was already plagued with problems before its collapse, with some unsuccessfully trying to liquidate some or all of their investments for months.
One such investor, Damien Johnson of Sydney, has been vocal against myCryptoWallet and the problems he experienced with the platform.
He opened his account with the online trading platform in 2017 and has since documented his frequent issues with the company.
In a video Mr Johnson first posted online more than six months ago, he revealed that his repeated attempts to contact customer service were ignored.
“I had a problem with my account and sent several email messages. Then I realized that I was not alone,” he said in a video.
Mr Johnson then noticed that myCryptoWallet had made a rare post on his Twitter account in April this year urging customers to email him with any pending support inquiries.
Despite this, he said that he and other users are still unable to submit support tickets or withdraw their funds.
“I was still unable to withdraw coins, send support tickets and I was not alone,” he said.
Back in September, Mr Johnson claimed in a Twitter post that he and other users were still unable to withdraw their money and asked for an investigation of the platform.
On Tuesday, when it was announced that the company had gone into liquidation, Mr Johnson posted online that he had known something was not right “for months”.
“I need to do a full audit to see where the funds went,” he said.
He also recently posted screenshots of his myCryptoWallet account online, showing several warnings about buy and sell functionalities that are “disabled for maintenance”.
Another investor in Western Australia had plans to take myCryptoWallet to court.
In September, Twitter user @xrpwelded posted a call for anyone interested in taking the company to court.
“Don’t think the Australian government is going to assist! Strong in the numbers team!! Those who are interested should PM me and jump on board,” he wrote.
Another Twitter user, Benjamin McDonald, also posted in September claiming that he had attempted to contact the company multiple times about problems with his account.
The ‘Serial Entrepreneur’ Behind MyCryptoWallet
Jaryd Koenigsmann, 28, founded myCryptoWallet in 2017 and was Was previously announced as one of Melbourne’s young “successful serial entrepreneurs”.
Mr. Koenigsman was also behind myNewPet, an online pet classifieds company launched in 2019.
At the time, Mr Konigsmann said hear the herald He had taken off in support of the UK government to expand into England, as well as a new partner in a huge international pet transport company.
But the company went into liquidation last year with a debt of $43,138. Australian,
Mr Konigsman was nominated for Business News Australia’s Melbourne Young Entrepreneur Awards in 2018 for myCryptoWallet, myNewPet and Node Coworking, an office space in Collingwood that was reportedly sold last year.
“Jaryd Koenigsmann is an entrepreneur for the next generation,” the website said.
“Jumping onto the world of blockchain train, crypto and co-working, Koenigsman has quickly become a successful serial entrepreneur.”
The MyCryptoWallet website says that the platform provides a “user-friendly, customer-focused, all-inclusive digital currency service with a high level of security and a serious and thoughtful approach to maintaining customer security”.
It also stated that “the power of blockchain distributed ledger technology” makes users’ funds “more secure and traceable than bank vaults”.
A Senate inquiry in October recommended regulating exchanges such as myCryptoWallet to provide assurance to investors.
Australian Securities and Investments Commission chairman Joe Longo has warned consumers to be “very careful” when dealing with crypto.
News.com.au is not suggesting that Mr. Koenigsman is responsible for users’ missing funds.
A creditors report is expected to be filed by December 17.
— with Chantelle France