Digital Surge is set to resume its trading services as early as next week.
Digital Surge, a Brisbane-based cryptocurrency exchange established in 2017, plans to resume operations after stakeholders sign a recovery plan.
The documents submitted to the Australian Securities and Investments Commission (ASIC) on February 15th revealed that stakeholders signed a recovery plan hours before Digital Surge had to go into liquidation.
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Australian crypto exchange creditors were informed about the matter through a circular issued on February 15th. According to several sources, Digital Surge expects to resume trading as early as next week.
Digital asset specialist and partner at a law firm Piper Alderman, Michael Bacina, noted that Digital Surge may be the first Australian crypto exchange to successfully complete its restructuring plan. On top of that, Bacina added:
Digital assets face challenging legal issues, and it took the hard work of knowledgeable specialists to get here. The deal is a testament to the goodwill seen throughout the blockchain community in Australia.
Digital Surge started facing difficulties back in November 2022. On November 16th, the cryptocurrency exchange froze customer assets, days after crypto exchange FTX filed for bankruptcy.
The company said it had “some limited exposure to FTX.” Digital Surge held 33 million Australian dollars on a now-bankrupt crypto exchange FTX.
In December, the company went into voluntary administration. During the process, the Digital Surge management team handed over the control of the company to appointed administrators. In this case, it was Melbourne-based investment firm KordaMentha.
At the end of January, creditors approved the firm’s five-year bailout plan. The plan noted that Digital Surge is set to receive a 1.25 million Australian dollar loan from an associate business, Digico.
The “Deed of Company Arrangement” noted that customers with under $250 in their accounts will be repaid immediately after the company resumes its services. Other investors will receive at least 45% of their balances, while the remaining funds will be repaid over five years.