Maybe not on the same scale as other exchanges, but another exchange has bitten the dust. Australian exchange Digital Surge was created in 2017 and has fallen into administration, with its 30,000 Australian customers unable to withdraw their funds.
KordaMentha Restructuring has been appointed administrator and is working on a rescue package. In the coming weeks and months, the news will come out that Digital Surge was poorly run and has debts larger than it can service. We all know that that means Digital Surge is as good as dead.
Allegedly the directors of Digital Surge, based in Brisbane, Queensland, will spend $1 million of their own money on a repayment plan to refund every customer their funds. This is fresh off the back of their freezing trading last month after the collapse of FTX.
The fallout of FTX is still landing on the crypto ecosystem. Poorly run cryptocurrency exchanges suspending trading and withdrawals before announcing they're going into administration or bankruptcy.
It's starting to become a joke now. How can crypto be accepted as an alternative to fiat if the ramps that customers have to use to trade, buy and sell cryptocurrencies are being run by children who can't manage them properly? It's a pattern we have seen many times now.
Every cryptocurrency exchange collapse sets crypto back a little bit more. And yet, we keep seeing the same thing happen over and over again. The idealists in the community are adamant that we don't need regulation when it is clear what we are doing right now isn't doing anything.
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