Digital Surge Cryptocurrency Exchange Announces Closure

Digital Surge, a cryptocurrency exchange based in Brisbane, Australia, has gone into external administration, suspending more than 30,000 user accounts after it was involved in the collapse of the troubled international exchange FTX.

Auditors from analyst firm KordaMentha were appointed on Thursday. The exchange’s clients have been unable to access their funds for the past two weeks, and in late November, the company announced that it was suspending accounts.

The fact is that Digital Surge kept a «part» of its assets — Australian dollars and cryptocurrency — on FTX to speed up and facilitate transactions. The FTX, in turn, fell spectacularly last month after it turned out that the company did not have enough client funds.

«There is no denying that this has been an extremely difficult and frustrating time for everyone in the cryptocurrency sector. We have always acted with the best interests of our users in mind, including when making the decision to hire a new administration,» said the cryptocurrency exchange’s representatives. They hope to use the new administration to return most of the digital assets to the largest investors.

KordaMentha has also started managing FTX’s local assets, where about 30 thousand Australian customers have lost tens of millions of dollars. On Friday, a KordaMentha spokesperson said that the company is in the process of determining the positions of Australian clients on FTX, but noted that this process will take a long time.