FTX owes $33 million to Australia’s Digital Surge

Digital Surge, the defunct Australian cryptocurrency exchange, is owed $33 million by FTX, which was one of the world’s largest crypto platforms before it went bankrupt in November.

Digital Surge owed $33m by FTX

According to documents filed with the Australian Securities and Investments Commission (ASIC), Digital Surge had $55.4 million in digital assets when it went into administration.

Administrator KordaMentha estimated “the value of assets remaining with the FTX group of companies to be $33m”.

ASIC documents also disclosed that Digital Surge owes DigiCo a secured $1,05 million debt.

KordaMentha has already received a slew of emails from customers who suffered financial losses as a result of FTX’s bankruptcy, with some reporting losses in the hundreds of thousands of dollars. As of right now, the administrators cannot provide a return estimate to creditors, the firm said.

The directors of Digital Surge are joining forces with stakeholders to develop a rescue plan, despite the fact that administrators only have access to a “high-level summary.”

Digital Surge froze customer accounts on November 16, and trading remained suspended as of Friday morning.

KordaMentha subsequently informed creditors that the digital assets secured by the administrators would continue to be frozen during the administration process.

Digital Surge, based in Brisbane, went into administration earlier this month, with more than half of its digital assets deposited with FTX.

The spectacular failure of FTX and its former billionaire founder Sam Bankman-Fried, who was extradited to the US to face charges of fraud and conspiracy, has caused the cryptocurrency equivalent of a worldwide bank run.

The 30-year-old is facing eight charges related to his role in the crypto exchange’s demise, with a maximum sentence of 115 years in prison.