Crypto

Digital Surge plummets into administration after crypto exchange FTX collapses

Australian crypto exchange collapses in the wake of the FTX debacle – leaving tens of thousands of investors in shambles

  • Australian cryptocurrency exchange Digital Surge has collapsed into administration
  • It comes after the Brisbane-based company suspended all deposits and withdrawals
  • The move came after FTX filed for bankruptcy on Nov. 11, sending shockwaves

Australian cryptocurrency exchange Digital Surge fell into administration just weeks after multibillion-dollar crypto exchange FTX collapsed.

Some 30,000 Australian customers are now unable to move or withdraw money on the trading platform.

It comes after the Brisbane-based company was forced to temporarily suspend all deposits and withdrawals last week following the collapse of FTX.

Australian cryptocurrency exchange Digital Surge fell into administration just weeks after multibillion-dollar crypto exchange FTX collapsed (stock image)

Some 30,000 Australian customers are now unable to move or withdraw money on the trading platform (stock image)

Some 30,000 Australian customers are now unable to move or withdraw money on the trading platform (stock image)

Bahamas-based FTX filed for Chapter 11 bankruptcy on Nov. 11 following mismanagement and allegations former FTX CEO Sam Bankman-Fried used money from a client to fund investment bets with Alameda Research.

Digital Surge was established in 2017 and allowed customers to access 300 digital currencies and use the FTX platform for some of its trading.

KordaMentha Restructuring was appointed administrator following the collapse of the trading platform.

“We fully appreciate the uncertainty that voluntary administration will create,” said KordaMentha partner Scott Langdon.

“We will communicate proactively and regularly with clients to ensure they are fully informed of the administration’s progress.”

Australian financial watchdog ASIC recently warned Australians that the cryptocurrency market is “risky”.

“Crypto exchange businesses are not ASIC regulated and crypto assets are largely unregulated in Australia,” he said.

“ASIC is very concerned that Australians investing in crypto may not have fully understood the risks and may have lost money during this year’s valuation crash.

“ASIC has repeatedly warned investors that crypto is incredibly risky, inherently volatile and complex.”

It comes after the Brisbane-based company was forced to temporarily suspend all deposits and withdrawals following the collapse of FTX (pictured, former CEO of imploded FTX crypto exchange Sam Bankman-Fried)

It comes after the Brisbane-based company was forced to temporarily suspend all deposits and withdrawals following the collapse of FTX (pictured, former CEO of imploded FTX crypto exchange Sam Bankman-Fried)

In a letter sent last Tuesday and first published by CoinDesk, former FTX CEO Sam Bankman-Fried wrote that he was “sorry.”

“I didn’t want any of this to happen, and I would give anything to be able to go back and do it again. You were my family.

His apology comes as the CEO faces a possible US government investigation into allegations he used FTX client money to fund investment bets with Alameda Research, a sister company and run trading company. by his former girlfriend Caroline Ellison.

His team of 10 close friends ran a glorified fraternity from his $40 million home in the affluent Albany neighborhood of the Bahamas, according to the New York Post.

A local resident told the Post, “They were walking around in sweatshirts and t-shirts. This was not the Albany lifestyle that residents signed up for. The typical dress was Ralph Lauren sports jackets. Sam and his group didn’t seem to fit the role.

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