The collapse of crypto empire FTX has sent shockwaves right around the world, with many questioning the future of digital coins
Now, one Australian company is feeling the pinch.
Brisbane-based ‘Digital Surge’ says it will halt all withdrawals, citing the “greatly upsetting” news FTX is in administration.
Digital Surge allows investors to trade cryptocurrencies in a number of different ways, including through self-managed super funds.
CEO Dan Rutter says his company “operates as a broker and is committed to facilitating the best trade for users at any time”.
This means a portion of assets are actually held by trading partners.
FTX was one of these trading partners and as a result, Rutter says the company isn’t currently able to operate “business as usual”.
Withdrawals have already been blocked for over a week. The CEO says the company is still solvent and this is all related to short-term liquidity challenges.
Adding, “until a permanent solution has been implemented, it is a legal requirement for Digital Surge to suspend all deposits and withdrawals”.
But the company remains tight-lipped about how many customers are affected and what exposure it had to FTX.
