Australian crypto trading platform myCryptoWallet collapses, founder Jaryd Koenigsmann silent

Chaos as Australia’s highest profile crypto trading platform COLLAPSES with furious users left owing tens of thousands of dollars

  • Cryptocurrency trading platform myCryptoWallet liquidated with users owed
  • Founder Jaryd Koenigsmann has not spoken about company’s ongoing dramas
  • Users have complained about myCryptoWallet since 2019

A high-profile cryptocurrency trading platform has collapsed leaving hundreds of users furious over losses running into thousands of dollars.

The exchange myCryptoWallet, run from Melbourne, was been placed in liquidation and its tattooed founder Jaryd Koenigsmann remains silent about the company’s long-running dramas.

It was launched in 2017, functioning as a digital marketplace to buy and sell cryptocurrency, but was under investigation by the Australian Securities and Investments Commission after complaints from users began in 2019.

Users complained of big losses, including a grandfather who said he had $40,000 with myCryptoWallet that he could not access.

One twitter user posted: ‘$40,000 grand invested, and all stuck in that exchange. Sad thing is no government department gives a s***!’

Aly Sarfaraz tweeted the company recently pleading for help to withdraw his funds as its normal systems would not allow the transaction. 

‘Hello can I please get some help. I have come back to mycryptowallet after a year and I need to withdraw money,’ he wrote.

‘It is asking for authorisation but the code never comes. Its been couple of days I have tried reaching you but no one answer.’

The collapse of the company, which launched with multiple media appearances by Mr Koenigsmann, has caused further concern about the unregulated nature of the crypto market.

Customers of myCryptoWallet began complaining publicly of difficulties withdrawing and moving funds back in 2019 and that they could not trade due to authentication and website issues.

The exchange suspended services twice in 2019 following reported losses, including halting its myCryptoCard program following  ‘deposit technology partner’ terminated a contract.

In January 2019 National Australia Bank closed myCryptoWallet’s bank accounts but was reported to have reinstated them soon after. 

The company also began to scale back customer service hours, infuriating users and was also understood to have ‘gone dark’ for nearly a year due to various difficulties.

At its launch MyCryptoWallet made several claims including being ‘Australia’s most advanced digital currency solution’ and Australia’s first fee-free platform.

Mr Koenigsmann also launched a digital pet classified service with considerable fanfare in 2019, myNewPet.

Its selling point was it could verify the identity of buyers and sellers instantly.

Another 200,000 Australians have joined the ranks of cryptocurrency investors this year, according to the tax office.

Up from an estimated 600,000 in 2020, the latest data shows there are more than 800,000 individuals transacting in cryptocurrency, the Australian Tax Office told AAP on Friday.

‘We are continuing to see an increase in Australians participating in the cryptocurrency market,’ an ATO spokesman said.

The ATO matches data from cryptocurrency service providers to individual tax returns to make sure investors are paying the right amount of tax.

There are no separate figures 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 spokesman said.

Worldwide, the NFT market value is predicted to hit US$10 billion ($A14 billion) by the end of this year, up from just US$338 million in 2020, according to investment information firm Invezz.

As well as getting transaction data from cryptocurrency exchanges and banks, the ATO also shares data with the financial intelligence agency Australian Transaction Reports and Analysis Centre (AUSTRAC) and overseas tax agencies.

‘The majority of Australians do want to pay the correct amount of tax and seek to report their gains and losses correctly,’ the ATO spokesman said.