Struggling Crypto platform Digital Surge will pay back up to 100% of funds
Aussie Crypto exchange Digital Surge is ready to pay up to 100% funds to its creditors but will take half a decade.
Digital Surge is an Australian Crypto exchange, which went under the control of a third-party administrator, to manage the exchange’s financial position perfectly. Indeed, the exchange had significant exposure to the FTX exchange, which filed for bankruptcy in Nov 2022.
In the latest exchange confirmed with CoinDesk news media that the exchange’s new deal to give compensation to the creditors has been approved by creditors successfully.
Under this mutual agreement deal, Exchange will pay 100% of the funds to those creditors who were holding funds up to $250 and above this amount will get at least 45% of what they were holding. In all these payback plans, the exchange will take up to 5 years, which is still a better option for the creditors instead of getting no deal.
To make the financial position of the exchange something at a better level, the exchange will collect 1.25 million Australian dollars from an associated business, Digico.
In speaking with Coindesk media, Digital Surge founder and CEO Dan Rutter said that he is thankful to the customers that they are supporting the exchange under this situation.
Rutter said:
“We thank customers for their engagement and involvement throughout this process, and for the 90% support we saw in favor of the DoCA.”
FTX bankruptcy
FTX was the second biggest crypto exchange in the crypto sector but failed badly to provide smooth services. FTX’s former CEO & co-founder Sam Bankman-Fried (SBF) misused the exchange’s funds for personal benefits.
Allegedly, SBF funded his another Crypto hedge company Alameda Research.
In the first week of Nov 2022, FTX failed to give withdrawal of the funds to all of its users, and finally on 19 Nov exchange filed for bankruptcy along with 100 of its affiliated companies.
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