Australian Cryptocurrency Exchange Digital Surge Collapses Into Administration

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Cryptocurrency exchange Digital Surge has collapsed into voluntary administration, suspending the accounts of around 30,000 Australian customers.

The exchange, which has allowed users to buy and sell over 300 different cryptocurrencies, appointed KordaMentha as administrators two days ago in a bid to prepare a rescue plan for investors.

During the administration process, customers cannot withdraw or deposit funds and will not be able to trade digital assets.

Australian cryptocurrency exchange Digital Surge has collapsed into administration. (Provided)

In a statement, administrator Scott Langdon said Digital Surge administrators were cooperating with the process and that the platforms’ customers were the “highest priority.”

“We fully appreciate the uncertainty the voluntary administration will create,” Langdon said.

“We will communicate proactively and regularly with clients to ensure they are fully informed of the administration’s progress.”

Digital Surge customers cannot make withdrawals during the administration process. (Getty)

Digital Surge was established in 2017 to allow Australian customers to trade cryptocurrencies such as Bitcoin and Ethereum, pledging to simplify the process for technology-confused investors.

The platform is the latest in a series of crypto exchange wipeouts, following the collapse of leading global exchange FTX last month.

Rival exchange Binance planned to take over FTX, but during due diligence uncovered evidence that customer funds were mishandled.

Sam Bankman-Fried, co-founder and CEO of FTX. (Bloomberg via Getty Images)

Leading cryptocurrency token Bitcoin suffered a similar year, losing more than 60% of its value as the global economy reopened from prolonged COVID-19 shutdowns.

In January 2022, one Bitcoin was trading at around $66,000 per coin. Today, that same asset is worth just under $22,500.

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