New Zealand’s Crypto Exchange Faces Liquidation with Customer Funds at Stake

Auckland-based crypto exchange Dasset is facing dire circumstances as it reportedly goes into liquidation, resulting in a distressing situation for its customers who are unable to access their funds.

The Herald, a local media outlet, has reported that hundreds of Dasset’s customers are currently locked out of their accounts, with substantial amounts of cryptocurrency worth tens of thousands of dollars trapped within the platform.

Amidst the turmoil, a disheartening story emerged from a customer who has been struggling to withdraw their life savings of $40,000 from their Dasset account for a period of three months without success.

Another user claimed to have received direct credit from the company’s CEO, Stephen Macaskill, yet remains unable to gain access to their account.

Macaskill disclosed that Dasset’s predicament stems from its inability to secure a new banking provider after its previous service was terminated in January.

Consequently, the exchange has taken the step of voluntary liquidation, resulting in the appointment of a liquidator.

However, customers still find themselves unable to retrieve their funds, and even though withdrawals have been halted, new users are still able to register on the platform.

The Dasset website has reportedly removed email addresses and phone numbers, leaving only a request form available.

A frequently asked questions (FAQ) page, which remains accessible, provides guidance on the process of fund withdrawals.

Shockingly, some users have allegedly been grappling with fund access issues since April, even for modest sums as low as $5,000.

Despite attempts to contact the exchange, Blockworks has not received a response, while the Financial Markets Authority (FMA) has acknowledged the situation and initiated an investigation.

The FMA has previously issued warnings about the high-risk and speculative nature of cryptocurrencies, urging investors to fully comprehend the associated risks.

Dasset initially emerged during the peak of the ICO bubble in 2017, establishing itself in the Auckland region. When compared to industry giants like Binance and Bybit, Dasset maintains a modest stature, as indicated by data.