Australian Regulator: Too Early to Investigate Troubled Bitcoin Firm Igot

NEWS
Stan Higgins
Apr 12, 2016 at 21:40 UTC  |  Updated  Apr 12, 2016 at 21:41 UTC

Australia's top securities regulator has suggested that it cannot at present intervene in a long-simmering dispute involving bitcoin exchange service Igot and unhappy customers.

In comments to The Sydney Morning Herald, a representative for the Australian Securities and Investments Commission (ASIC) said that an investigation into Igot would only take place if the company had failed - a charge alleged by customers who say their funds remain locked up and that has denied by the company.

The representative told the news source:

"As with any company, if it were to go into administration or liquidation and there was suspected wrongdoing or breaches of the law, it would be a matter we would look into."

Scrutiny of Igot, which has been accused of fraud in the past, resurfaced this week following a report by the Australian Broadcasting Corporation.

Igot founder Rick Day told the outlet that his firm was having difficulties paying customers.

"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," he said.

When reached for comment, Day denied that his service is insolvent.

"Some customers are affected by the delays and are being resolved. Bank related issues have had an impact on our operations," he told CoinDesk.

Customers of the service say they've been seeking answers for months.

One customer, Australia-based bitcoin company Digital CC, told ABC that Igot owes the firm $180,000. According to a notice published by ASIC, Digital CC is seeking to have Igot dissolved and its assets sold to repay creditors through court action.

Others have claimed to have have as much as tens of thousands of dollars held in the platform.

Australia image via Shutterstock

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