Australian cryptocurrency exchange Digital Surge seems to have dodged downfall. It is believed that the company kept millions of dollars worth digital assets in the currency bankrupt FTX crypto exchange, as stated by Cointelegraph.
According to Cointelegraph, Digital Surge creditors gave approval to a five-year bailout plan for indemnifying 22,545 customers, who have had their digital assets frozen on the platform since November 16, 2022. On December 8, 2023, context of the recovery plan was revealed by the exchanges’ directors through email.
On the basis of information by Cointelegraph, insights from the “Deed of Company Agreement” mentioned that Digital Surge will get a 1.25 million Australian dollar loan from an associated business called Digico. Reportedly, the step will permit the exchange to continue trading and operating. “Customers will be repaid in cryptocurrency and fiat currency, depending on the asset composition of their individual claims,” KordaMentha said.
Moreover, Cointelegraph noted that Digital Surge started its operations in 2017 but was at the receiving end of FTX collapse’s effects in November, 2022. As a result, withdrawals and deposits were suspended days post FTX entered into bankruptcy proceedings and FTX Australia was placed into administration.
(With insights from Cointelegraph)