Investors have exposed the chaos unfolding behind the scenes in the run-up to the collapse of the Australian crypto trading platform myCryptoWallet.
Dozens of unanswered messages, ignored and blocked customer support tickets to withdraw thousands of investments – this was the reality for some users of a leading Australian crypto trading platform before its spectacular collapse.
Melbourne-based MyCryptoWallet called trustees on Friday to close the book on a troubled existence, which featured technological setbacks and a period of downtime following a dispute with major bank NAB.
The liquidation of the trading platform, which once boasted 20,000 clients, has left some investors tens of thousands of dollars out of pocket.
MyCryptoWallet was launched in late 2017 as a platform that allows users to buy, sell, and trade assets such as bitcoin, ethereum, and ripple.
Clients say the platform had been plagued with problems long before its collapse, with some unsuccessfully trying for months to phase out some or all of their investments.
One such investor, Damien Johnson from Sydney, has come out openly 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 repeated problems with the company.
In a video that Johnson first posted online more than six months ago, he revealed that his repeated attempts to contact customer service had been ignored.
“I had problems with my account and sent numerous emails. Then I realized that I was not the only one, “he said in the video.
Johnson later noted that myCryptoWallet had made a rare post on his Twitter account in April of this year, urging customers with any pending support inquiries to email them.
Despite this, he said that he and other users were still unable to submit support tickets or withdraw their funds.
“I still couldn’t withdraw coins, send support tickets and I wasn’t the only one,” he said.
In September, Johnson made a post on Twitter claiming that he and other users were still unable to withdraw their money and called for an investigation into the platform.
On Tuesday, when it was announced that the company had gone into liquidation, Johnson posted online that he had known “for months” that something was wrong.
“I need to see a full audit on where the funds went,” he added.
He also recently posted online screenshots of his myCryptoWallet account, showing multiple warnings that the buy and sell functionalities are “disabled for maintenance.”
Another Western Australian investor had plans to take myCryptoWallet to court.
In September, Twitter user @xrpwelded made a post calling anyone interested in taking the company to court.
“It doesn’t look like the Australian government is going to help! Strongest team in numbers !! those who are interested should email me and jump on board, “he wrote.
Another Twitter user, Benjamin McDonald, also posted in September stating that he had tried to contact the company several times about problems he was having with his account.
‘Serial Entrepreneur’ behind myCryptoWallet
28-year-old Jaryd Koenigsmann founded myCryptoWallet in 2017 and was previously heralded as one of Melbourne’s young “successful serial entrepreneurs.”
Koenigsmann was also the man behind myNewPet, an online pet classifieds company launched in 2019.
At that time, Mr. Koneigsmann told the Sun herald He had had UK government support to expand into England, as well as a new partner in a large international pet transport company.
But the company went into liquidation last year, with debts of $ 43,138 according to The australian.
Koneigsmann 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 read.
“Jumping on the train of the blockchain, the world of cryptocurrencies and working together, Koenigsmann has quickly become a successful serial entrepreneur.”
The myCryptoWallet website says that the platform offers an “all-inclusive, customer-centric and user-friendly digital currency service with a serious and conscientious approach to maintaining a high level of security and customer protection.”
It also states that “the power of Blockchain distributed ledger technology” makes user wealth “more secure and traceable than a bank vault.”
A Senate investigation in October recommended that exchanges like myCryptoWallet be regulated to provide security to investors.
The Chairman of the Australian Securities and Investments Commission, Joe Longo, has warned consumers to be “very careful” when it comes to cryptocurrencies.
News.com.au does not suggest that Koenigsmann is responsible for lost funds from users.
A creditors’ report is expected to be filed before December 17.
– with Chantelle Francis