NZ crypto exchange Dasset’s meltdown: Liquidator’s first report finds $6.3m missing, fraud cops called in

The first liquidator’s report on failed New Zealand cryptocurrency exchange Dasset makes grim reading for users desperate to find out what happened to their funds.

Initial investigations by liquidators Russell Moore and David Ruscoe, both of Grant Thornton, have found the equivalent of around $6.3 million in cryptocurrency unaccounted for - the difference between what Dasset customers thought they had in their digital wallets and the digital currency actually on hand.

“Based on records we have received to date it appears that there is a significant shortfall between the reported level of users’ holdings and the amount of digital assets held by the company, with digital assets of around $0.6m versus user liabilities of around $6.9m,” the report says.

“Given the potential shortfall detailed above, the liquidators have been in contact with the Financial Markets Authority [FMA] and the Serious Fraud Office.”

At this point, it’s not even clear if the $0.6m can be fully recovered by the liquidators, given third-party exchanges are involved.

“At this stage it is unknown if there will be any funds available to meet users’ claims,” the report says.

Employees are owed $16,700 in unpaid wages and holiday pay.

The IRD is owed $203,700, while various unsecured creditors are owed $53,700.

Dasset users spoken to by the Herald - including a mother of two with $40,000, her life’s savings, with the firm - say they contacted the FMA over June and July, as account access was disabled, but only received auto-responses from the market watchdog.

Pre-liquidation, the FMA would only say it was aware issues had been raised. Overnight, the watchdog told the Herald, “The FMA can confirm its inquiries have elevated to a formal investigation.” The Herald understands multiple Dasset customers have been sent a questionnaire by the regulator.

A spokeswoman for the Serious Fraud Office said, “The SFO can confirm liquidators have been in contact and we are making inquiries.”

Users have had difficulty withdrawing funds since at least last October, with many finding their accounts disabled altogether over June and July - with founder, chief executive, major shareholder and, by the time of the firm’s collapse, sole director Stephen Macaskill impossible to contact.

On August 15, as Dasset was placed in liquidation, Macaskill texted the Herald: “Dasset has not had stable banking since January. The banks do not like the crypto industry.”

He did not respond to follow-up questions.

Read more about Dasset’s collapse, and comments from customers, shareholders, suppliers and the Minister of Commerce, here.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.