Crypto investors missing millions after 2 Aussie exchanges collapse

Customers of myCryptoWallet and ACX are in a panic as the apps stop withdrawals then shut down, leaving them unable to access their funds

| More on:
Man sits in front of laptop with head in hands.

Image source: Getty Images

In a warning to Australians investing in cryptocurrencies, 2 separate local exchanges have collapsed, leaving customers without their money.

A notice on the Australian Securities and Investments Commission website shows the exchange myCryptoWallet falling into liquidation last Friday.

The Motley Fool has contacted SV Partners, who has been appointed as liquidator, for comment.

The company’s website is still live as of Tuesday morning, but its Android smartphone app is no longer available and its Twitter account has closed.

According to The Australian, past social media posts indicated customers were having trouble withdrawing money out of the exchange in recent months.

Even though myCryptoWallet announced in an April tweet that those issues were “finalised”, many users replied that they still did not have access to their funds.

myCryptoWallet users with missing funds are instructed to contact the liquidator.

The exchange was established in March 2017, and claimed to be “a user-friendly, customer-centric, all-inclusive digital currency service” that had “a high level of security and customer safety”.

Blockchain Global Limited crypto customers missing millions

Meanwhile, customers of another Australian cryptocurrency exchange, ACX, have reportedly launched legal action to recover their funds.

ACX was operated by Blockchain Global Limited, which was wound up in October, according to ASIC filings.

The Motley Fool has contacted Pitcher Partners, which was appointed as administrator, for comment.

Blockchain Global’s assets consisted of millions in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), reported The Sunday Age.

According to the administrator’s filings to the Supreme Court, the two directors, Allan Guo and Sam Lee, have fled overseas and “are difficult to contact”.

A group of 94 ACX customers is taking matters into its own hands, taking the company and the directors to court for reportedly more than $10 million.

One investor told The Sunday Age he had used the platform for 3 years without issues before withdrawals were blocked without notice.

“I had no suspicion that it was a scam or anything like that. I was buying and selling, everything was functioning the way I thought it should function,” he said.

“It’s become obvious since then that there’s been some sort of wrongdoing.”

The Supreme Court has now frozen 117 bitcoins, worth about $9.2 million, from Blockchain Global’s assets in an attempt to stop them from being sold or moved.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tony Yoo owns Bitcoin and Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies