TrigonX, an Australian cryptocurrency exchange, is the most recent success story to emerge from the FTX breakdown. The exchange is preparing to relaunch following its collapse in December 2022 with debt obligations eclipsing $50M.
Earlier this week, The Australian reported that according to business head Matteo Salerno, TrigonX is slated for rebirth after creditors accepted the proposal of a company arrangement deed.
The cryptocurrency exchange, which was established in 2014, was among the many to be impacted by the November meltdown of FTX. TrigonX designated administrators on the 16th of December after realizing that it was not able to properly fund all customer withdrawal requests.
The return to a “better, more certain, and expedient dividend” to lenders, according to Salerno, would prove preferable to total liquidation.
“A liquidation would have been likely to tie up funds held in the administrator’s control for many years. This would have resulted in the substantial depletion of funds available to be distributed for the benefit of creditors.”
He further explained that the receivership’s purpose was to “achieve a speedy and optimum outcome to creditors.”
The law firm Kroll verified following a complete investigation that the downfall of Trigon was brought about by several reasons, including the demise of FTX. In addition to these issues, consumers exacerbated the issues by bringing legal action against the company in order to recover their money.
Kroll further investigated a number of significant transactions involving Salerno and his wife prior to the FTX crash. Salerno stated that the payments inquired about in the Kroll investigation were done in “the context of bringing employee entitlements up to date,” due to the impending transfer of the business.
King River Capital, an investor located in Sydney, is one of the company’s creditors. As per an April report published by the Australian Financial Review, the company is attempting to recover $9M from TrigonX which the investor hadn’t given permission to TrigonX to use for trading on the FTX platform.
In January of this year, it was made public that the Australian cryptocurrency exchange Digital Surge had barely escaped a total collapse in the aftermath of the FTX debacle despite holding digital assets worth millions. Creditors of Digital Surge endorsed a five-year rescue strategy, permitting the company to continue on with its operations.