• Digital Surge, an Australian cryptocurrency exchange, is set to come back online after stakeholders signed the recovery plan.
• Creditors were notified earlier today through a circular and the exchange is expected to resume trading next week.
• The plan involves a loan of 1.25 million Australian dollars from an associated business, Digico, to support the business and customers with under $250 will be repaid in full while others will receive at least 45% of their balance immediately.
Table of Contents:
I. Introduction
II. Background Information
III. Recovery Plan
Introduction:
Digital Surge, one of Australia’s leading cryptocurrency exchanges has recently announced that it is set to come back online following the signing of its recovery plan by all stakeholders on Wednesday. This news has been welcomed by many as it marks the first successful restructuring of a crypto related company in Australia and could prove to be a major turning point for digital asset regulation in the country going forward. In this article we will look at some background information about Digital Surge as well as details about their recovery plan and what this means for investors in Australia moving forward.
Background Information:
Digital Surge was established in 2018 when it launched its Brisbane based cryptocurrency exchange platform with the aim of providing Australians with easy access to crypto markets around the world. However things took a turn for worse when FTX collapsed late last year leaving Digital Surge holding 33 million Australian dollars on their platform which led them into voluntary administration soon afterwards where Melbourne-based investment firm KordaMentha was appointed as administrators. It was during this period that creditors approved a long-term recovery plan for Digital Surge which still needed both company and administrator signatures before it could take effect 15 days later which they managed to do so just before time ran out ensuring continued operations at Digital surge now onwards into 2023..
Recovery Plan:
The main focus of Digital Surges recovery plan revolves around receiving a loan from an associated business called Digico worth 1.25 million Australian dollars which would provide much needed financial support for them going forward and also help pay back customer deposits up until 250 AUD with full payment while any amounts above that figure would receive 45% immediately followed by 55% over 5 years from profits made by the company itself . There have also been other measures put in place such as better risk management systems being implemented along with stringent anti money laundering regulations making sure only legitimate transactions are allowed onto their platform thus providing customers peace of mind knowing that there funds are secure at all times when trading on Digital surges platform . All these changes have been welcomed by investors who hope that this could be start something big not only for digital assets but also blockchain technology in general within Australia and beyond into neighboring countries like New Zealand