Auckland-based crypto exchange, Dasset is grappling with a crisis as its customers find themselves locked out of accessing their funds. The situation has escalated to the point where the company has initiated the process of liquidation as reported by The Herald.

Customers of the Auckland-headquartered crypto exchange have been grappling with a distressing dilemma – they are unable to access their funds. Also, reports have been emerging for months of unsuccessful attempts by some customers to withdraw their holdings from the exchange.

Banking Woes and Voluntary Liquidation

The CEO of Dasset, Stephen Macaskill, shed light on the challenges the company has been facing. Following the termination of its previous banking provider’s services in January 2023, Dasset found itself without a suitable replacement. As a result, the exchange struggled to maintain its operations and profitability.

Consequently, the decision was made to initiate voluntary liquidation, a move aimed at mitigating further financial turmoil.

Despite the unsettling developments, it’s noteworthy that individuals can still create new accounts on Dasset. Curiously, no official announcements regarding the ongoing liquidation process have been disseminated through the company’s former social media channels.

A screenshot of the website redirection

Notably, a critical juncture has been reached. Dasset’s official website is now redirecting visitors to an announcement made by Grant Thornton, a prominent law firm. The announcement confirms Grant Thornton’s appointment as the official liquidator for the exchange.

“Dasset’s management cites a substantial reduction in asset values and trading activity as the driving factors behind the decision to appoint liquidators. This course of action has been undertaken to safeguard the interests of all stakeholders,”

Grant Thornton’s mission is clear – to ensure the safeguarding and preservation of Dasset’s assets. The law firm is gearing up to contact all customers and suppliers within the next few days. Furthermore, their commitment to maintaining a laser focus on asset protection underscores the gravity of the situation.

New Zealand’s Regulatory Stance

As the turmoil unfolds, the wider regulatory context of New Zealand’s crypto landscape becomes increasingly relevant. Ian Woolford, Director of Money and Cash at the Reserve Bank of New Zealand, has publicly indicated that the country remains steadfast in its regulatory approach to crypto.

Despite the challenges posed by Dasset’s predicament, the nation continues to navigate the crypto sphere using existing legislation. This further treats digital assets as a form of property and subjects them to non-crypto-specific financial, anti-money laundering, and tax guidelines.

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