Crypto exchange crippled, claims Australian bank closed its account

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Crypto exchange crippled, claims Australian bank closed its account

Users of Australian crypto exchange, myCryptoWallet, are currently unable to make withdrawals because the exchange claims the National Australia Bank has unexpectedly closed its bank account.

myCryptoWallet has sent an email to its customers in which it labels the behaviour of the National Australia Bank as “unethical” and “unprofessional”.

“Due to the National Australia Bank (NAB) closing our bank account without notice, we are sorry to inform you that all withdrawals are currently disabled until further notice,” the email says.

“NAB has made absolutely no attempt to give us any reason or justification for why they have closed our business bank account.

“They carried out this action without notice or notification, and upon asking for an explanation, they have simply told us that they will get back to us in five business days.”

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The exchange says it has opened a separate bank account to handle deposits.

“The most eminent concern we have with this situation is that all of our customers’ funds are currently locked away in that account,” it says.

crypto exchange
Part of the email sent to myCryptoWallet customers regarding the National Australia Bank account closure.

Crypto exchange customer anger

Despite the bank furor, Micky.com.au can reveal claims that all withdrawals (even cryptocurrency transfers) from myCryptoWallet had been disabled weeks before the recent announcement about the NAB account closure.

Speaking to micky.com.au, one user says he was unable to withdraw Ripple (XRP) at the start of January.

“At the start of Jan, I sent them an email asking if they could transfer my XRP to another wallet and they said NO… I’ve tried contacting ADCA (Australian Digital Commerce Association) but they haven’t replied,” he tells Micky.

“My biggest upset is they’re still taking deposits, they still have a bank account.”

myCryptoWallet has been inundated with complaints from customers on social media.

“I noticed the (sic) your (sic) taking deposits but not doing withdraws please explain,” wrote one customer on Twitter.

“Feeling abit (sic) frustrated at the delay and lack of information,” wrote another.

“Can you please shed some light on why people can’t (sic) take money out of your exchange at the moment but you are still accepting deposits,” asked a Facebook user

On January 7, an email was sent to exchange users about a “technical issue” affecting withdrawals.

“myCryptoWallet is currently undergoing maintenance for a technical issue related to our withdrawal function, and as a result, ALL withdrawals will be temporarily disabled until further notice,” the email said.

crypto exchange
The first email myCryptoWallet users received regarding withdrawals.

“A common problem within the industry”

myCryptoWallet says its lodged a complaint with the Australian Financial Complaints Authority (AFCA) and will be pursuing legal action against National Australia Bank.

But the company has revealed it has been in this situation before.

“This is not the first time one of the big 4 banks has closed our business bank account and is a common problem within the (cryptocurrency) industry,” it says.

“Unfortunately due to the size and influence of institutions such as NAB, they often get away with this kind of unethical and unprofessional behaviour.

Micky has sought comment from National Australia Bank and further comment from myCryptoWallet.

Do you know more? Email admin@micky.com.au

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