Australian Crypto Exchange Halts Trading, Enters Voluntary Liquidation

DAEX, a major Australian cryptocurrency exchange, has halted all trading operations and entered voluntary liquidation as of Jan. 5, 2026. The company has appointed Daniel O'Brien of DV Recovery Management as the liquidator. This move has left investors uncertain about the recovery of their funds.

The liquidation affects multiple platforms operating under the DAEX umbrella, including AUDX Australia, AUDX Global, and GlobalOne Exchange. Statements published on the platforms' websites confirmed the immediate cessation of operations. The liquidator has urged creditors to come forward with claims.

DAEX is owned by Digital Capital Group (DCG), a North Sydney-based firm that continues its operations. DCG shares the same sole director and registered office as DAEX but is not in liquidation.

What Caused the Collapse?

A central point of scrutiny is DAEX's claim that its AUDX Global arm held a cryptocurrency license from the Mwali International Services Authority (MISA). MISA is based in Mohéli, an autonomous island in the Union of the Comoros. The Central Bank of the Comoros has previously labeled MISA as a 'fictitious' entity. It claims MISA has no legal standing to authorize financial institutions.

Both the Central Bank of the Comoros and the New Zealand Financial Markets Authority (FMA) have issued warnings about MISA. Critics argue that MISA's independent registration system is used by offshore entities to appear legitimate without the oversight of Tier-1 regulators according to regulatory analysis.

What Does This Mean for Investors?

The collapse follows a period of regulatory shifts for DAEX. The exchange was formerly a registered representative of fund manager Edisons Global, which allowed it to operate under an Australian Financial Services Licence (AFSL). However, this arrangement ended in May 2025 when the Australian Securities and Investments Commission suspended Edisons Global's license.

Despite the liquidation, authorities have not suggested any misconduct or wrongdoing by DAEX or its parent company, DCG, in relation to those events. The liquidator has emphasized the need for creditors to make contact immediately.

What Are Regulators and Analysts Observing?

The DAEX situation highlights ongoing regulatory scrutiny in the cryptocurrency space. This includes broader efforts by regulators to monitor and control the proliferation of unregulated or loosely regulated crypto platforms. DAEX was launched in 2021 and operated under the AFSL until its suspension.

Investors and industry observers are closely watching how the liquidation process unfolds and whether regulatory bodies will take further action against similar exchanges. The collapse also underscores the importance of due diligence for investors in the crypto space.

What Is the Path Forward for Creditors?

Creditors who believe they are owed money by DAEX are urged to contact the appointed liquidator immediately. The liquidation process involves assessing the debt owed to creditors and managing the distribution of remaining assets. The total amount of debt is currently unclear.

This event could have broader implications for the Australian and global crypto markets. It underscores the volatility and risk associated with investing in digital asset platforms, especially those operating under questionable regulatory frameworks.

What Broader Trends Does This Reflect?

DAEX's collapse reflects a broader trend of regulatory tightening and scrutiny across the crypto industry. In recent months, regulators worldwide have taken a harder stance on unregulated crypto platforms. For instance, the EU recently declared Grok's 'Spicy Mode' illegal.

The DAEX case also highlights the growing concerns around the use of offshore licensing regimes to provide a veneer of legitimacy. This trend is being closely monitored by regulatory bodies and market participants, who are increasingly aware of the risks associated with such practices.

What Steps Should Investors Take Now?

Investors affected by the DAEX liquidation should assess their options carefully. This includes contacting the liquidator, evaluating insurance coverage if available, and staying informed about the ongoing process. The situation also underscores the need for investors to conduct due diligence and understand the regulatory environment of any investment platform.

The DAEX collapse serves as a cautionary tale for investors in the crypto market. It highlights the importance of transparency, regulatory compliance, and risk management in the rapidly evolving digital asset landscape.