Former advisor to the igot bitcoin exchange says they are insolvent

In a new report from ABC, several new customers from the troubled bitcoin exchange igot which is based out of Australia are claiming they have not been able to receive any of their funds which are due to them from the exchange.

This has been an ongoing problem for the exchange for some time. We did our own report and spoke with the founder and owner of the exchange Rick Day last year, where he admitted to problems but said they would be resolved.

According to ABC, the bitcoin exchange igot appears to be on the verge of collapse, with dozens of customers and clients claiming to be owed hundreds of thousands of dollars.

“I am well aware that customers are affected and customers are really unhappy with this but I would like to show each and every one that we have not lost their money. We have not run away with anything and we will return the money,” Mr Day told the ABC.

To make matters worse, entrepreneur Jesse Chenard, who worked with igot as an advisor in 2014, said that he had a first hand view into the bitcoin exchange finances. Chenard said,

“I think at that time igot was insolvent but because Rick claimed to have other assets and because everything was murky and in his name and what have you, he claimed that he was able to cover it and it was a small accounting thing […] what people thought that they had bought with their Australian dollars or Indian rupees or US dollars or whatever currency they were dealing in — they hadn’t been actually bought. It hadn’t been bought for them,” Mr Chenard said.

Jesse Chenard stopped advising igot and decided against investing. Unfortunately for others, the exchange has been open, and others have too used the exchange and have lost funds, according to additional customer complaints in the report.

At the time of publishing, igot remains open for business and is accepting new customers on their exchange platform. It’s still unclear if they are actually insolvent or not, and may take some sort of Australian government intervention to make things right for those that have used the exchange and have their funds tied up in it.

SHARE
david@bitcoin.com'
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.