After about two months of anxiety, crypto exchange digital surge creditors can now smile after the news that the stock market is going to repay its creditors.
The news came after confirmation that the Australian stock exchange will receive a rescue of 1.25 AUD from a related company. This was after creditors had approved a long-term corporate recovery plan.
Trouble with the digital power surge.
The woes of the Digital Surge crypto exchange started after the collapse of the FTX crypto exchange in November. In total, its digital power surge lost approximately $33 million on FTX.
The Australian Stock Exchange immediately went public with a freeze on the digital assets of its more than 22,000 clients. Assets are still frozen to this day.
As the situation deteriorated, the exchange became voluntary (management transferred control to licensed insolvency practitioners to independently assess its financial position) in December 2022. Kordamentha, an investment company based in Melbourne, was the licensed insolvency practitioner designated by the rise in digital power for this process.
That's a rare development.
Only in rare cases, the cryptocurrency Digital Surge will not become insolvent after the reports that the exchange was going to receive a loan of 1.25 AUD from Digico, who is a partner company. This means the exchange is going to survive the devastating crypto contagion that wiped out $1 trillion across the industry and resulted in several major crypto companies including Genesis filing for bankruptcy.
As developments unfold, digital surge will pay back its creditors with customers who had $250 in their accounts being repaid in full immediately with the rest receiving 45% of their balance in 5 years.