Digital Surge to Repay Creditors After $33 Million Bailout
– Crypto exchange Digital Surge lost around $33 million in the collapse of FTX.
– Digital Surge froze customer funds and passed into voluntary administration in December of 2022.
– Digital Surge received a 1.25 Australian dollars bailout from an associate business, allowing them to pay back creditors.
Crypto exchange Digital Surge experienced a major setback in November of 2022 when the collapse of FTX caused them to lose around $33 million. Faced with an uncertain future, the Australian exchange immediately froze the digital assets of its customers in order to protect their investments. Unfortunately, Digital Surge’s situation only deteriorated from there and the exchange eventually passed into voluntary administration in December of 2022.
KordaMentha, a Melbourne-based investment firm, was appointed as the licensed insolvency practitioner to independently assess Digital Surge’s financial situation. Fortunately, the exchange was able to receive a 1.25 Australian dollars bailout from an associate business, allowing them to pay back creditors who were concerned about the future of their investments. This bailout came as a welcome surprise to many customers and creditors, who had feared that the exchange may become insolvent.
The news of the bailout was enough to restore some sense of calm amongst Digital Surge’s customers and creditors. Many were relieved to find out that their investments were still secure and that the exchange could continue to function in a safe and secure manner. Furthermore, the exchange has also taken steps to improve its security measures, ensuring that customers can continue to trust the exchange with their investments.
While Digital Surge is still working on restoring its reputation, the news of the bailout is a major step forward for the exchange. With the funds now available, Digital Surge will be able to pay back its creditors and continue to operate with improved security measures. This should result in more customers being willing to trust the exchange with their investments, thus allowing Digital Surge to fully recover from the collapse of FTX.