Two Australian Exchanges Collapse, A Search For $50M Lost Crypto Starts

Two Australian exchanges collapsed in mid-October and now an administrator started a search for the $50 million lost in crypto as we can see more in today’s crypto news.

The veteran insolvency practitioner Andrew Yeo was appointed to Blockchain Global company that ran ACX which is a now-collapsed exchange, in order to find the lost in crypto. He got a crash course in all things crypto and he said:

“There’s always stuff that’s different – you have that on every job. Its always about finding out what’s different about this industry and how you can use it.
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The crypto exchanges represent digital marketplaces that enable customers to buy, sell and hold cryptocurrencies. It also makes money by imposing fees or by taking a percentage of transactions. The banks in Australia don’t allow customers to buy and sell crypto but the Commonwealth bank had a pilot in the works so it can operate as an exchange as well. To get to the bottom of what happened to all the cash and coins in the ACX accounts, Yeo will have to go through all claims that were playing out in court since last year:

“It’s clear that there’s a number of channels of investigation which we may have available and determining which ones are best to follow first is not a simple task.”

There’s plenty at stake because creditors and clients as well as Blockchain Global Directors came forward with claims that they are owed close to $50M. ACX is not the only Australian exchange to run into trouble as we saw MycryptoWalelt exchange that fell into administration owning its client’s thousands of dollars. Exchanges prove vulnerable to failure and theft like the biggest case we knew of MT Gox that collapsed after someone stole 850,000 BTC from it and hackers then stole another 120,000 from bitfinex. This week, the Morrison government announced new plans to regulate exchanges in the future.

In a speech, the Australia-Israel Chamber of Commerce and its treasurer Josh Frydenberg said the government will consult establishing a licensing system for crypto exchanges along with regulation of businesses that are holding crypto on behalf of the customers. The consultation process will be finished by the middle of 2022 after the election set for May. Experts say licensing exchanges is a great idea but has to be backed by enforcement.