TrigonX emerges from FTX rubble as a crypto exchange

TrigonX, an Australian cryptocurrency exchange, is the latest company to recover from the FTX collapse. The exchange is set to relaunch after it collapsed in December with debts exceeding $50 million. According to TrigonX’s director Matteo Salerno, the exchange is earmarked for revival after a deed of company arrangement was approved by creditors. This was reported by The Australian on May 29. TrigonX was founded in 2014 and was one of many digital asset exchanges 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, which would tie up funds held in the administrator’s control for many years, resulting in the depletion of funds available for distribution among creditors. The intention behind the receivership was to achieve a speedy and optimum outcome for creditors. A report by legal firm Kroll confirmed that TrigonX’s failure was caused by several factors, including the collapse of FTX, which was 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 the pending sale of the company. Sydney-based investor King River Capital is among the creditors. The firm is fighting to recover $9 million from TrigonX that King River had not authorized TrigonX to trade with on FTX at the time. This was reported in the Australian Financial Review in April. In January, Australian cryptocurrency exchange Digital Surge was revealed as another exchange that narrowly avoided collapse in the wake of the FTX meltdown despite having millions of dollars in digital assets tied up with it. Digital Surge creditors approved a five-year bailout plan, allowing the firm to continue operating.

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