Tens of thousands of Australian investors with superannuation and savings tied up in cryptocurrency remain in suspense, as a major Australian broker collapses into voluntary administration.
Key points:
- Brisbane-based cryptocurrency broker Digital Surge has gone into voluntary administration
- The company is proposing a “rescue plan” but this would need to be approved by its 30,000 creditors and administrators
- Mum and dad investors are facing losses in the hundreds of thousands on their superannuation and savings
Digital Surge froze the trading accounts of its 30,000 clients last month. This means people with money in the broker cannot access their funds.
Now, a month later, the Brisbane-based cryptocurrency broker has entered voluntary administration.
Voluntary administration is generally something a company does when it is either at risk of insolvency or is already insolvent.
Insolvency is when a company cannot pay its debts as and when they are due.
Kamal Jain has all of his superannuation – more than $150,000 – sitting frozen in a Digital Surge account.
“I lost everything,” he said.
“It’s a big setback and there’s nothing I can do.”
Digital Surge’s administrators KordaMentha confirmed the company had about 30,000…