Crypto Tax Calculator Australia Discovers Influx of Issues from Users Of, Now Bankrupt, FTX Exchange

The exchange FTX has since gone bankrupt with the website no longer active. Crypto Tax Calculator Australia is now seeing an influx of users of FTX experiencing issues due to API keys no longer being functional, therefore denying access to their account.

What happened?

FTX was a cryptocurrency exchange site, providing an online platform to buy and sell cryptocurrency. The collapse of FTX took place over a period of ten days in November of 2022. This was set in motion by a report from CoinDesk on November 2nd that revealed Alameda Research, a quant trading firm also run by Bankman-Fried, held a position worth $5 billion dollars in FTT--the native token of FTX. Not only this, but the investment foundation for Alameda was also discovered to be in FTT--the very same token that their sister company had created. This lack of disclosure led to immense concern throughout the cryptocurrency industry as people started to worry about leverage and solvency.

What's the issue?

With the removal of the FTX website and the entire company going into liquidation, users and traders can no longer access their cryptocurrency accounts, data and transaction history. Crypto Tax Calculator Australia recommends that users of FTX or other cryptocurrency exchanges, take into consideration best practice security measures when using any crypto currency exchange site. This includes downloading CSV files from exchanges rather than solely relying on API keys. This means users will still have access to their account’s data, transactions and account information, all of which are imperative when it comes to calculating crypto tax in Australia.

Users of FTX that did not download their CSV files are now struggling to submit their crypto tax in Australia and obtain accurate tax reports for the ATO.

What now?

Crypto Tax Calculator Australia advises that it is best practice for users to always download CSV files from exchanges rather than solely relying on API keys to provide accurate data. When it comes to calculating crypto tax in Australia, Crypto Tax Calculator Australia only accepts CSV files as a secure and reliable method of data submission. By using a crypto tax calculator that primarily focuses on CSV file imports, users can avoid situations where API keys are not set up properly or in this case, become inactive due to the exchange's website being taken down. Crypto Tax Calculator Australia stresses the importance of users to always practice security measures when using any cryptocurrency exchange site.