Digital Surge to Repay Customers After Losing $33M on FTX

Digital Surge to Repay Customers After Losing $33M on FTX

• Australian cryptocurrency exchange Digital Surge has been bailed out after creditors approved a long-term recovery plan.
• The company will receive a loan of 1.25 million Australian dollars from an associated business, Digico, to allow it to function.
• Customers with under $250 will be repaid in full and others will receive at least 45% of their balance over five years.

Table of Contents:
I. Introduction
II. Background Information on Digital Surge
III. Details of the Recovery Plan
IV. Conclusion

I. Introduction: On January 25th, 2023, Australian crypto exchange Digital Surge was granted a bailout by its creditors after losing $33 million on FTX and having its digital assets frozen since November 16th, 2020. Melbourne-based investment firm KordaMentha was appointed as administrators and a deed of company arrangement (DoCA) is set to provide customers with repayment plans over the next five years for balances above $250 in value. In this article we will look at the background information on Digital Surge, the details of their recovery plan, and what this means for their customers going forward into 2021 and beyond as well as for other exchanges which may face similar issues in the future.

II. Background Information on Digital Surge: Founded in 2018 by CEO Dan Rutter, Digital Surge was one of Australia’s largest crypto exchanges until it had to file for voluntary administration in December 2020 due to its loss on FTX and subsequent freezing of digital assets held by 22000 customers since then totaling more than half its digital asset holdings at that time.. KordaMentha were appointed administrators while an associated business Digico provided a loan of 1.25 million AUD to help keep operations running during this period until a steady recovery could be planned out through DoCA proceedings with creditors present at meetings taking place both Monday 25th Jan 2023 as well as Tuesday 26th Jan 2023 leading up to 90% approval from those involved for repayment plans over 5 years starting March 2021 till 2025 .

III . Details Of The Recovery Plan : As per details released before Tuesday’s meeting , customers who had balances less than 250 AUD would get all their money back while those with higher amounts would start receiving 45% refunds beginning March 2021 lasting till 2025 when 90% repayment is expected . This plan was approved by creditors present making it official allowing funds to start flowing back into customer accounts shortly thereafter according to CEO Dan Rutter who thanked them all for showing support despite trying times bringing relief not just locally but globally too due to implications or possibilities arising from such events happening elsewhere around world where legal frameworks might not prove so favorable towards investors or businesses seeking protection like here in Australia ..

IV .Conclusion : With successful implementation & completion ,of this unique & unprecedented example set here at home , now other countries across continents can possibly follow suit if needed protecting businesses & individuals alike helping foster better trust between exchanges & people trading online without fear or worries about sudden losses due lack proper oversight measures taken beforehand especially when dealing with risk prone ventures such type involving cryptocurrencies …

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