Australian crypto trading platform myCryptoWallet collapses, founder Jaryd Koenigsmann silent

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A large-scale cryptocurrency trading platform has collapsed, leaving hundreds of traders furious with losses totaling tens of thousands of dollars.

The Melbourne-run myCryptoWallet exchange has gone into liquidation and its tattooed founder Jaryd Koenigsmann remains silent on the company’s long-running dramas.

Terry Grant Van der Velde of Brisbane Insolvency Specialist SV Partners has been appointed liquidator in a new notice issued by the Australian Securities and Investments Commission.

There is no suggestion that Mr. Koenigsmann is responsible for the missing funds from the users.

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

It claimed to have over 20,000 users just three months after its high-profile launch.

The Melbourne-operated myCryptoWallet exchange has gone into liquidation and its tattooed founder Jaryd Koenigsmann remains silent on the company’s long-running dramas, although there is no suggestion that he is responsible for the missing funds. .

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

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

Traders complained of big losses, including a grandfather who said he had $ 40,000 with myCryptoWallet that he couldn’t access.

“Big $ 40,000 (sic) invested and all locked in this trade.” What is sad is that no ministry gives as ***, ”he wrote on Twitter.

Another angry user claimed he was reimbursed $ 756 but was still owed $ 5,000.

Aly Sarfaraz tweeted at the company this month, begging for “help” in withdrawing its funds as its normal systems would not allow the transaction.

“Hello, can I get some help please. I came back to mycryptowallet after a year and need to withdraw money, ”Mr Sarfaraz wrote.

The collapse of myCryptoWallet - which was launched with several media appearances by Mr Koenigsmann - has raised new concerns about the unregulated nature of the crypto market

The collapse of myCryptoWallet – which was launched with several media appearances by Mr Koenigsmann – has raised new concerns about the unregulated nature of the crypto market

“He asks for permission but the code never comes. It has been a few days since I tried to reach you but no one is answering.

The company tweeted in April 2021 saying it had fixed the issues and “finalized all outstanding account issues” – a statement immediately contradicted by frustrated traders.

The collapse of myCryptoWallet – which was launched with several media appearances by Mr Koenigsmann – has raised new concerns about the unregulated nature of the crypto market.

The exchange suspended its services twice in 2019 following reported losses, including the shutdown of its myCryptoCard program after a “deposit technology partner” terminated a contract.

In January 2019, the National Australia Bank closed myCryptoWallet bank accounts, but reportedly restored them shortly thereafter.

The company has also started cutting customer service hours, infuriating users and is also said to have “gone dark” for almost a year due to various difficulties.

He emailed some sort of explanation to frustrated users in July 2019, blaming the difficulties in accessing funds on his “deposit technology partner.”

“Unfortunately, our deposit technology partners have ignored calls from our CEO regarding user deposits that had not been credited to myCryptoWallet’s bank account,” the email to users read.

“We received a response from our after-hours depository technology partner on Friday, July 5, which was a terminated contract and left myCryptoWallet with a substantial loss.”

When it launched, myCryptoWallet made several statements, including being “Australia’s most advanced digital currency solution” and Australia’s first free platform.

Mr Koenigsmann also launched a digital pet classifieds service with great fanfare in 2019, myNewPet.

It quickly gained over 1,000 users based on a selling point that it could instantly verify the identity of buyers and sellers.

But he also ran into trouble and was wound up with debts of $ 43,138 in September 2020.

Another 200,000 Australians have joined the ranks of cryptocurrency investors in 2021, according to the Australian Tax Office

Another 200,000 Australians have joined the ranks of cryptocurrency investors in 2021, according to the Australian Tax Office

The collapse of myCryptoWallet comes as cryptocurrency trading continues to explode in Australia.

Another 200,000 Australians have joined the ranks of cryptocurrency investors in 2021, according to the ATO.

Up from around 600,000 in 2020, the latest data shows there are more than 800,000 people transacting in cryptocurrency, the ATO told AAP.

“We continue to see an increase in the number of Australians participating in the cryptocurrency market,” said an ATO spokesperson.

The ATO matches data from cryptocurrency service providers to individual tax returns to ensure investors pay the correct amount of tax.

There are no separate numbers available for non-fungible tokens (NFTs) amid the global craze for digital art, music, gaming items, and other collectibles.

“The tax treatment of NFTs follows the same principles as cryptocurrencies,” the spokesperson said.

Globally, the market value of NFT is expected to reach US $ 10 billion (AU $ 14 billion) by the end of this year, up from just US $ 338 million in 2020, according to the information company. Invezz investments.

In addition to obtaining transaction data from cryptocurrency exchanges and banks, the ATO also shares data with the financial intelligence agency Australian Transaction Reports and Analysis Center (AUSTRAC) and foreign tax agencies.

“The majority of Australians want to pay the right amount of tax and seek to correctly report their gains and losses,” said the ATO spokesperson.

Daily Mail Australia has contacted myCryptoWallet and SVP partners for comment.


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