Digital Surge Gets Lifeline After $33M Loss, Plans to Reopen Digital Asset Trading

• Digital Surge, an Australian cryptocurrency exchange, had its digital assets frozen after losing $33 million on FTX.
• 25 prominent institutions in Australia have come together to start a research program to explore digital asset opportunities.
• Creditors have approved a long-term recovery plan for Digital Surge, bailing it out.

Digital Surge, an Australian cryptocurrency exchange, recently had its digital assets frozen after it lost $33 million on FTX, a cryptocurrency exchange that collapsed in November. As a result, the Brisbane-based exchange had passed into voluntary administration, a process in which the management hands over control to licensed insolvency practitioners who handle the assets of the company and work to provide a solution for creditors.

In order to make up for the lost funds and provide relief to creditors, twenty-five prominent institutions in Australia have come together to start a research program to explore digital asset opportunities. The research program aims to create an environment where digital assets can be traded securely and efficiently.

Michael Bacina, partner at law firm Piper Alderman, explains why Australia is the prime location to test asset digitization. He said that Australia has a robust legal and regulatory framework with access to capital and technology, which makes it the ideal place to explore what the future of digital assets looks like.

Now, after months of negotiations, creditors have approved a long-term recovery plan for Digital Surge, bailing it out and allowing the company to pay back its creditors. More than 22,000 of Digital Surge’s customers have had their digital assets frozen since November 16, and the company hopes that this new plan will help them gain access to their assets again.

Digital Surge has said that it is committed to working with creditors and regulators to ensure that customers can regain access to their assets as soon as possible. It will also be exploring other opportunities in the digital asset space and developing new products and services to give customers more options.

The company is confident that its new recovery plan will help them move forward, and that it will be able to provide a safe and secure environment for its customers to trade digital assets. In the coming months, Digital Surge will continue to work with creditors and regulators to ensure that customers can get back the assets they had frozen.