MyCryptoWallet Users See Their Funds Stuck As Company Has Bank Account Shut Down
An Australian Bitcoin and crypto exchange called myCryptoWallet, which was launched in 2017, has recently sent a very worrying email for its users: the National Australia Bank (NAB) has decided to shut down the accounts of the company. This created a large issue as the company has no way to actually pay its clients without its bank account.
Because of this, withdrawals were disabled until further notice. The company has set up an additional account to handle deposits, though, and affirmed that it is trying to solve this as quickly as possible. You can see a print of the email here:
— Jen (@JenBCrypto) January 21, 2019
According to the bank, the NAB has simply made no attempt to give any kind of reason or information about the account, it has simply decided to shut it down without any kind of notification saying that it would “get back to them in 5 business days”.
This makes all the funds from the customers stay locked, which is the biggest concern at the moment. The company has filed a complaint with the Australian Financial Complaints Authority, which has told that the bank would have 45 days to answer.
myCryptoWallet has affirmed that the delay is not acceptable and that the company would go to court to sue the NAB for damages and gross negligence. The team has also encouraged the users to go the bank and demand it to reopen the accounts, as this would be the only way to actually pay people back.
At the time of this report, the bank did not issue any official statement talking about what happened to the account and why they have decided to shut it down.
Unfortunately, the situation seems to be far from over anytime soon as the bank will probably not reopen the accounts in the next few days and it has a long time to answer to the crypto company while the clients have to wait without their assets.
Update from MyCryptoWallet Director Jaryd Koenigsmann:
“As thousands of our users know, regrettably our company bank account was frozen without warning or justification recently, locking up the funds of many of our customers.
We appreciate the concerns and frustrations of our customers, and we're extremely sorry for the inconvenience caused. We're continuing to work to resolve the issue as quickly as possible and, despite some suggestions, we have not been hacked.
The Australian Financial Complaints Authority (AFCA) has set a deadline of March 6 for NAB to respond. However, at this stage, we are taking steps to make our customers' funds available within 1-2 weeks.
Some users have noticed deposits are still possible on our platform. This is due to an interim account being used to allow our customers to continue to purchase cryptocurrency, if they choose. Transfers between wallets using cryptocurrency linked to the frozen funds have been suspended temporarily while the issue is resolved.
We're certainly not the first exchange to have our account frozen. We've seen it happen to many exchanges around the world. It's also not the first time it's happened to us. This despite the efforts we've taken since, which include implementing industry-leading Know Your Customer standards through VIX Verify, which connects directly with Australia's government ID databases.
Again, we apologise to all our customers. We're hopeful that, as cryptocurrency continues to grow, these types of occurrences will cease to exist. In the short term, however, our primary focus is on releasing our customers' funds, which we will do as quickly as possible.”