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Investors have exposed the chaos unfolding behind the scenes in the lead up to the collapse of Aussie crypto trading platform myCryptoWallet.
Dozens of unanswered messages, customer support tickets ignored and being blocked from withdrawing thousands in investments – this was the reality for some users of a prominent Australian crypto trading platform before its spectacular collapse.
Melbourne-based myCryptoWallet called in administrators on Friday to close the book on a troubled existence, which featured tech setbacks and a period of inactivity following a dispute with major bank NAB.
The liquidation of the trading platform – which once boasted it had 20,000 customers – has left some investors tens of thousands of dollars out of pocket.
MyCryptoWallet was launched in late 2017 as a platform that let users buy, sell and trade assets such as bitcoin, ethereum and ripple.
Customers say the platform had been plagued with issues well before its collapse, with some trying unsuccessfully for months to remove some or all of their investments.
One such investor, Damien Johnson from Sydney, has been outspoken against myCryptoWallet and the issues he experienced with the platform.
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He opened his account with the online trading platform in 2017, and since then has documented his repeated issues with the company.
In a video Mr Johnson first posted online more than six months ago, he revealed his repeated attempts to get in touch with customer service had been ignored.
“I had issues with my account and sent numerous email messages. Then I realised I wasn’t the only one,” he said in a the video.
Mr Johnson then noticed that myCryptoWallet had made a rare post on its Twitter account in April this year, urging customers with any pending support inquiries to email them.
Despite this, he said he and other users were still unable to lodge support tickets or withdraw their funds.
“I was still unable to withdraw coins, send support tickets and I wasn’t the only one,” he said.
Back in September, Mr Johnson made a Twitter post claiming 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 the company had gone into liquidation, Mr Johnson posted online that he had known “for months” something wasn’t right.
“I need to see a full audit as to where the funds went,” he added.
He also recently posted screenshots online of his myCryptoWallet account, showing multiple warnings about buying and selling functionalities being “disabled for maintenance”.
Another investor from Western Australia had plans to take myCryptoWallet to court.
In September, Twitter user @xrpwelded made a post calling for anyone who would be interested in taking the company to court.
“Doesn’t look like the Australian government is going to assist! Stronger in 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 he had tried to contact the company multiple times about issues he was having with his account.
‘Serial entrepreneur’ behind myCryptoWallet
Jaryd Koenigsmann, 28, founded myCryptoWallet in 2017 and was previously heralded as one of Melbourne’s young “successful serial entrepreneurs”.
Mr Koenigsmann was also the man behind myNewPet, an online pets classifieds company launched in 2019.
At the time, Mr Koneigsmann told the Herald Sun he had locked in support from the UK Government to expand into England, plus a new partner in a huge international pet transport company.
But the company went into liquidation last year, with debts of $43,138 according to The Australian.
Mr 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 said.
“Jumping on the blockchain train, the world of crypto and co-working, Koenigsmann has quickly become a successful serial entrepreneur.”
The myCryptoWallet website says the platform offers a “user-friendly, customer-centric, all-inclusive digital currency service, with a serious and mindful approach to maintaining a high-level of security and customer safety”.
It also states “the power of Blockchain distributed ledger technology” makes users’ wealth “more secure and traceable than a bank vault”.
A senate inquiry in October recommended exchanges such as myCryptoWallet be regulated 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 Mr Koenigsmann is responsible for users’ missing funds.
A creditors’ report is expected to be filed by December 17.
– with Chantelle Francis
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