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Financial Markets Authority of New Zealand warning about the igot bitcoin exchange

Financial Markets Authority of New Zealand warning about the igot bitcoin exchange

Australian based bitcoin exchange igot is in the news again, unfortunately for them it’s for a bad reason again. The exchange has been in turmoil for a long time now suffering from customer issues and negative media.

The Financial Markets Authority (FMA) has established itself as an agency with a critical role in regulating capital markets and financial services in New Zealand.  The FMA is responsible for ensuring public confidence in financial markets and supporting the growth of New Zealand’s capital base through effective regulation.

In the FMA’s newest update, they issued an alert for businesses they strongly recommend that you do not invest money in. At the top of the list of two handfuls of businesses is the bitcoin exchange igot. The FMA wrote in a blog post Businesses to be wary of,

“The FMA has received complaints from New Zealand based clients of IGOT about IGOT’s failure to repay clients in accordance with their instructions. IGOT is not registered or required to be registered to provide financial services in New Zealand.”

igot in trouble before

We first starting looking into the igot exchange back in the Fall 2015, after hearing about many customer complaints for some time. We reached out to the exchange founder Rick Day, who gave us an interview on the status of igot at that time.

He blamed customer issues on banking problems and fraudulent transactions. Day said,

“One of the biggest issues that we have with delays is banking relationships. Banks are still not very open to idea of bitcoin companies and this means we’re put through rigorous compliance with them. Any fraud or suspicious transaction can trigger this. This is exactly what has happened with us.”

Then earlier this year, igot made news headlines again when a former adviser to the exchange explicitly claimed that they are insolvent, to which igot responded saying they are not.

The warning from the FMA doesn’t come as a surprise, as the exchange has had so many issues over the years, similar to other exchanges which eventually imploded like Mt. Gox and Cryptsy.

Tags in this story
Australia, bitcoin exchanges, bitcoin trading, Financial Markets, Igot, New Zealand
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david@bitcoin.com'
David Shares

David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.