thecoinrepublic.com
Highlights
- In a recent event, 2 Australian crypto exchanges have collapsed, leaving the investors unable to transact.
- ACX & Mycryptowallet are the two exchanges that have reportedly failed, causing damages worth $50M
- Australian government to regulate the industry to avoid such instances from further
As the universe is relatively new to the asset class, the industry & the markets are largely unregulated. While the west is leaving no stones unturned, the east is fairly accessing the working mechanisms around cryptos. As people figure out the workings behind cryptocurrencies, 2 Australian exchanges have reportedly gone bust, leaving their customers hanging from a cliff in an unfortunate event.
To get to the crux of the incident & to know more about ACX’s condition, people would need to dig through dozens of claims & counterclaims that have been varying out in court since last year. The company was operated by Blockchain Global limited.
A small group of consumers have reportedly sued the executives & ACX for $10 Million, while the overall damages from both exchanges are estimated at $50 Million. According to the filings, the directors have reportedly fled the country and are unreachable for now. However, the supreme court has frozen 117 Bitcoins worth at least $9.2 Million from Blockchain global’s assets.
Victims of ACX were reportedly angry with the Australian regulators as both the companies were registered under the Australian Securities & Investment Commission (ASIC). Clients of ACX were angered that they still had to sue the company & the ASIC seemed to be aloof from the whole incident.
ACX was not the only company to have gone bust. A much smaller exchange named myCryptoWallet who has a liquidator, SV partners, has been served notice from ASIC, falling into liquidation last Friday.
The CEO of SV partners, Terry Vander Velde, aims to sell the business. While the firm’s website is up & running, the exchange has shut their applications & most social media handles.
While the exchange had problems from February, many users complained when they could not withdraw their funds into the accounts. Even though the exchange had claimed to have fixed such issues, those still finding it difficult have been asked to contact the liquidator.
The Australian government had earlier proposed establishing a licensing system that would eradicate such fallacious businesses from operating. The consultations around the same are scheduled to conclude next year after the elections. As the momentum around the crypto sphere picks up, such cases of inertia are expected to surge. Hence it becomes essential to look before trading with any businesses following the world of cryptocurrencies.