Brisbane fintech Digital Surge is the latest cryptocurrency exchange to be placed in voluntary administration in the wake of the collapse of US exchange.
Scott Langdon, John Mouawad and David Johnstone from KordaMentha Restructuring were appointed voluntary administrators on Thursday, after the fintech’s directors made the decision to put the business in VA on Wednesday.
Digital Surge was founded in 2017 by Dan Rutter and Josh Lehman. The pair are reportedly hoping to injection their own cash into a deed of company arrangement (DOCA) to save the business from bankruptcy and refund customers.
The exchange has around 30,000 Australian customers and offers access to more than 300 cryptocurrencies. It had been using the US exchange FTX – it local arm is also in voluntary administration with KordaMentha – for some trades.
In a post last month, Rutter said Digital Surge “has some limited exposure to FTX” in both Australian dollars and digital assets, but did not have any of FTX’s FTT tokens.
He said the company was still solvent at the time, but “due to our exposure to FTX, we are experiencing some short-term challenges with liquidity” and was “exploring options with industry partners to overcome these issues”.