Auckland-based cryptocurrency exchange Dasset is struggling financially, leaving its clients with frozen accounts and an uncertain future. As reported by the Herald, the exchange’s shaky situation has left users with substantial holdings in limbo. The sudden freeze blindsided clients as the exchange prepares for liquidation.
Users reportedly complain of losing access to tens of thousands of dollars worth of cryptocurrency, highlighting the vulnerabilities of unregulated digital assets and the platforms facilitating their trade. One affected client tried to withdraw $40,000 from their Dasset account, only to be disappointed.
Their funds remained trapped within the exchange’s frozen infrastructure despite substantial efforts. Another client, with a personal recommendation from CEO Stephen Macaskill, needed help accessing their holdings.
Dasset’s financial woes stem from losing its primary financial supplier earlier this year. Consequently, the exchange has struggled to secure an adequate alternative, impairing its operational capacity. CEO Stephen Macaskill has acknowledged these difficulties, revealing the company’s decision to enter liquidation and engage a liquidator voluntarily.
However, the expected swift approval of a liquidator has been conspicuously delayed, adding to the uncertainty and eroding trust. Amid the financial turmoil, Dasset continues operating its Bitcoin exchange but has suspended withdrawals temporarily. This move has torn some clients between the desire to exit and the inability to do so due to the freeze.
Additionally, the exchange has faced criticism for its need for more transparency. Dasset has removed contact information like email addresses and phone numbers from its online presence, directing users toward a submission form for inquiries.
The tribulations of Dasset reflect a broader trend of financial instability within the cryptocurrency exchange sector. Significantly, even major exchange FTX succumbed to bankruptcy last year, allegedly due to its CEO and executives mishandling company funds. Founded in 2017 in Auckland, Dasset emerged around the same time as industry giant Binance, though as a more minor player.
Moreover, the Reserve Bank of New Zealand recently unveiled a strategic partnership with Ripple (XRP) to explore the potential of a Central Bank Digital Currency (CBDC). The partnership aims to bolster the capabilities of CBDC and expedite its implementation, showcasing the Reserve Bank’s commitment to innovation in the digital currency space and potentially reshaping the nation’s financial landscape.
As Dasset’s clients confront frozen accounts and prolonged liquidation delays, the incident underscores the volatility and risks of cryptocurrencies. The ongoing challenges faced by the exchange also shed light on broader industry concerns, while the Reserve Bank’s collaboration with Ripple hints at a transformative future for digital currencies in New Zealand.