Australian cryptocurrency exchange Digital Surge collapses into administration

Australian cryptocurrency exchange Digital Surge collapses into administration
Australian cryptocurrency exchange Digital Surge collapses into administration

Digital Surge, a cryptocurrency exchange, has gone into voluntary administration, preventing approximately 30,000 Australian customers from accessing their accounts.

Two days ago, the exchange appointed KordaMentha as administrators in an effort to prepare a rescue package for investors. The exchange allowed users to buy and sell more than 300 different cryptocurrencies.

Customers will not be able to trade digital assets or make withdrawals or deposits during the administration process.

Digital Surge, an Australian cryptocurrency exchange, has gone bankrupt.
Administrator Scott Langdon said in a statement that the directors of Digital Surge were working with the process and that the customers of the platform were the “highest priority.”

´╗┐Langdon stated, “We fully understand the uncertainty the voluntary administration will create.”

A financial instrument

that has the potential to increase public exposure to the digital currency is set to launch this week, fueling renewed bitcoin hype.
Customers of Digital Surge are unable to withdraw funds during the administration process.

Digital Surge was established in 2017 as a means for customers in Australia to trade cryptocurrencies like Bitcoin and Ethereum. It promised to make the process easier for investors who were apprehensive about the technology.
Following the demise of the major global exchange FTX last month, the platform is the latest in a long line of failed cryptocurrency exchanges.

Binance, a rival exchange, had planned to acquire FTX, but evidence of alleged mishandling of customer funds was discovered during due diligence.

FTX’s co-founder and chief executive officer, Sam Bankman-Fried. Bloomberg via Getty Images) The most popular cryptocurrency token, Bitcoin, experienced a similar year in which it lost more than 60% of its value as the global economy reopened following prolonged COVID-19 lockdowns.

One Bitcoin cost approximately $66,000 per coin in January 2022. That same asset is now valued at just under $22,500.

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