Australian crypto exchange Blockchain Global lacks $ 50 million

When one exchange collapses in Australia, another exchange has already called managers to prove a minefield for people to get their money back.

The Australian crypto exchange has owed creditors a whopping $ 50 million after it collapsed in mid-October because users were locked out and unable to withdraw money.

According to the administrator’s pitcher partner, the exchange failure blockchain global, which operated the ACX cryptocurrency platform, was originally thought to be borrowing $ 21 million.

But now, with 107 claims filed, the company can pay up to $ 48.9 million, said Andrew Yeo, the manager in charge. Australian person..

It comes as a digital currency Replace myCryptoWalletWas founded by Jaryd Koenigsmann in 2017, but was liquidated this week after deleting its social media account. Some users complain that they have a debt of up to $ 50,000.

After months of reporting, we found that customers were having a hard time accessing their funds. The company previously claimed to have registered 20,000 people on the platform.

News.com.au does not suggest that Koenigsmann is responsible for the user’s lack of funds. He did not respond to requests for comment. The liquidator of myCryptoWallet will update by December 17th.

Meanwhile, creditors have debts ranging from thousands of dollars up to $ 8.3 million, according to a document filed with the Australian Securities and Investment Commission in connection with Blockchain Global.

Yo was the subject of four proceedings in the Victorian Supreme Court in November, but said the company’s financial position was complicated with directors stationed abroad.

One of the issues is related to ACX cryptocurrencies, with a total charge of $ 13 million. This includes “allegations that a significant amount of cryptocurrency is not taken into account.”

Further complicating the situation is former director Allan Guo, who claims to have a debt of $ 8.3 million, but the company’s cryptocurrency is only accessible via laptops allegedly stolen in China. ..

“Mr. Guo confirmed that he had previously accessed a wallet containing cryptocurrencies displayed on the company’s balance sheet,” the court ruling said.

“He informed Yeo’s staff that he was in China and his belongings were stolen in late 2019, before the Covid pandemic began.

“Some of the stolen items were his laptop, which contained credentials to access the wallet, and therefore the cryptocurrency it held.

“Yeo’s staff asked Guo to provide evidence of alleged laptop theft. Guo said he would submit a police report, but the report was not received. “

According to the administrator, Chinese messaging service WeChat and another director, Sam Lee, who was contacted by email, did not respond, but were believed to have access to some of the company’s Bitcoin.

The incident highlighted the difficulty of tracking money in a world of cryptocurrencies that are largely unregulated.

According to admins, some of Blockchain Global’s assets have been identified as millions in Bitcoin and Ethereum, but the investigation was still in its infancy.

Mr. Yo said Australian person The problem is complex, “it is likely that more extensive investigation will be needed to determine which party has the right to claim the same thing.”

He acknowledged that a “new approach” would be needed to recover cryptocurrencies, as they are different from the money stored in bank accounts.

“It does not imply that such cryptocurrencies are impossible to recover,” he added.

ACX also faces separate legal action initiated by 94 investors seeking $ 10 million after it went out of service in February 2020.

Bruno Fabre, an investor, said Sunday era He has been using the Blockchain Global exchange since 2017 and was fine until his withdrawals were suddenly blocked and he lost access to “significant” funds.

“I had no doubt that it was a scam or something like that. I was buying and selling, everything was working as I thought it should work.” He told the publication.

“Since then, it has become clear that there has been some sort of cheating.”

Chloe White of Digital Asset Advisory Group Genesis Block warned people to investigate before using exchange ownership and its operational history, especially as cryptocurrencies were much more tightly regulated than other financial products. ..

“It’s hard for consumers to know how to keep themselves safe when they naturally want exposure to a fast-growing asset class,” she said. Australian Financial Review..

“There is no such thing as a crypto market license. There are gaps in regulation.”

that is Maximum shake-up The transition to Australia’s payment system for a quarter of a century is under plans to strengthen the rules surrounding services such as cryptocurrencies, buy now, pay later, and Apple Pay.

Initially published as follows Australian Cryptocurrency Exchange Blockchain Global: Find Missing $ 50 Million

Source: https://sydneynewstoday.com/australian-crypto-exchange-blockchain-global-lacks-50-million/455449/

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