- Brisbane-crypto exchange, Digital Surge, has fallen into administration.
- KordaMentha was appointed as the administrator to help the Digital Surge.
- The directors of Digital Surge believe this decision will help protect the interests of customers and creditors.
The effects of the FTX crash spread to the shores of Australia, as a Brisbane-crypto exchange, Digital Surge, has fallen into administration. KordaMentha, an advisory and investment firm, has been appointed as the administrator to help the Digital Surge and its creditors to get back right on track.
According to a press release, KordaMentha Restructuring was officially appointed yesterday as the Voluntary Administrator for Digital Surge, while the decision to appoint the firm had been decided on Wednesday.
Seeking KordaMentha Restructuring’s help, the directors of Digital Surge believe this decision will protect the interests of customers and creditors.
Scott Lang, a partner at KordaMentha Restructuring, is very pleased with the cooperative and collaborative approach taken by the directors to understand Digital Surge’s financial position and retrieve all the money back to creditors.
Envisioning a better future for Digital Surge and its investors, Langdon claimed:
We fully appreciate the uncertainty the voluntary administration will create. We will proactively and regularly communicate with customers to ensure they are fully informed on the progress of the administration.
Yesterday, the directors of the Brisbane-based crypto exchange claimed that $1 million will be funded as a repayment plan, with the mission to refund all its 30,000 customers. A notice was sent to the customer through a repayment proposal aka Deed of Company Agreement (DOCA).
Last month, Digital Surge froze the customers’ accounts, disenabling them from withdrawing or transferring any amount. Freezing customers’ accounts came after the FTX crash, as the crypto exchange had used the FTX platform to conduct crypto trading on behalf of its users.
Concurrently, the directors have commenced working with stakeholders to prepare a rescue package. The administrators believe it will be in the form of a DOCA.