TrigonX is back from the dead after it went into receivership in December, due in part to its $13 million exposure to bankrupt crypto exchange FTX.
Australian crypto exchange TrigonX is the latest revival story to come out of the FTX collapse, with the exchange set to relaunch after it collapsed in December with debts exceeding $50 million.
According to company director Matteo Salerno, TrigonX is earmarked for revival after a deed of company arrangement was approved by creditors, The Australian reported on May 29.
Founded in 2014, the digital asset exchange was one of the many affected by the sudden collapse of the FTX in November. TrigonX appointed administrators on Dec. 16, after it was unable to meet withdrawal demands.
Salerno said that a return to a “better, more certain and expedient dividend” to creditors would be a better scenario than 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 added that the intention behind the receivership was to “achieve a speedy and optimum outcome to creditors.”
A report by legal firm Kroll confirmed that Trigon’s failure was caused by several factors, including the collapse of FTX. It was also compounded by legal action taken against the firm by customers for the return of funds.
Kroll also investigated several large transactions made before the collapse of FTX, to Salerno himself and his wife. Salerno said that the payments queried in the Kroll report were made in “the context of bringing employee entitlements up to date,” given a pending sale of the company.
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Sydney-based investor King River Capital is among the creditors. The firm is fighting to claw back $9 million from TrigonX that King River had not authorized TrigonX to trade with on FTX at the time, according to an April report in the Australian Financial Review.
In January, Australian crypto exchange Digital Surge was revealed as another that narrowly avoided collapse in the wake of the FTX meltdown despite having millions of dollars in digital assets tied up with it.
In January, Digital Surge creditors approved a five-year bailout plan while allowing the firm to continue operating.
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