Even as FTX, the global exchange, went down in 2022, Digital Surge, the trading platform from Down Under, lost access worth over $30 million to assets it owned on the exchange. Digital Surge is Brisbane based. It froze every customer account last November to ward off a bankruptcy of its own.
Digital Surge collapsed last December and was forced into accepting voluntary administration. Founders charted out a plan of rescue with major creditors. Administrators discovered around $55.4M of digital assets. Over 50% of it had been placed with the FTX group.
Under this rescue plan that was jointly agreed to on Tuesday, the smallest of the account holders will get their payment refunds. But then the restructured entity has to show profits before the big account holders and the creditors are paid out.
Most Creditors Of Digital Surge Voted For A Rescue Plan
The plunging market for cryptocurrency was the reason for the downfall of the exchange. But prosecutors in the US have alleged that Bankman-Fried were guilty of making off billions from their FTX clients. He said that he wasn’t to blame.
KordaMentha has claimed possession of all assets on Digital Surge is on the FTX exchange and has also expressed apprehension that it could be years before the proceedings are concluded.
KordaMentha has stated that customers will probably be repaid in fiat currency or cryptocurrency. This will depend on the asset composition of their claims. This was stated by Korda Mentha as revealed in an Australia Business News report on January 24.
Digital Surge, when contacted, has confirmed that most creditors voted for a rescue plan at their second meeting on January 24. The communiqué added that further communication was expected, and it will e provided to every customer even as the administrative process that is with KordaMentha makes progress. The crypto exchange which is based in Brisbane has been operational since 2017 but became among the casualties of the collapse in 2017