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Australian cryptocurrency exchange TrigonX is the latest story of a resurgence from the FTX crash, with the exchange due to restart after a crash in December with debts in excess of $50 million.
TrigonX is destined for a resurgence after creditors approved an agreement to form the company, according to company director Matteo Salerno, The Australian reported on May 29.
Founded in 2014, the digital asset exchange was one of many hit by the sudden crash of FTX in November. TrigonX appointed administrators on December 16 after failing to meet withdrawal requests.
Salerno said returning creditors to “a better, more certain and expedient dividend” would be a better scenario than a liquidation.
“The liquidation will most likely tie up funds that have been under the administrator’s control for years. This would lead to a significant depletion of funds available for distribution to creditors.”
He added that the goal of the bankruptcy administration was “to achieve a quick and optimal result for creditors.”
A report from law firm Kroll confirmed that Trigon’s failure was due to several factors, including the collapse of FTX. This was also exacerbated by lawsuits taken against the firm by clients to recover funds.
Kroll also investigated several large transactions made before the collapse of FTX to Salerno and his wife. Salerno said the payments requested in the Kroll report were made “in the context of updating employee rights” given the company’s pending sale.
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Sydney-based investor King River Capital is among the creditors. According to an April report published in the Australian Financial Review, the firm is fighting to recover the $9 million from TrigonX that King River did not allow TrigonX to trade on FTX at the time.
In January, it was revealed that Australian cryptocurrency exchange Digital Surge narrowly escaped collapse after the FTX crash, despite having millions of dollars worth of digital assets tied to it.
In January, Digital Surge’s creditors approved a five-year rescue plan, allowing the firm to continue operating.