Despite having millions of dollars worth of digital assets locked up on the now-defunct FTX cryptocurrency exchange, Australian cryptocurrency exchange Digital Surge appears to have avoided collapse.

The company’s creditors approved a five-year bailout plan for Digital Surge on January 24 (local time), with the goal of eventually reimbursing its 22,545 customers who had their digital assets frozen on the platform since January 16. november. This plan will also allow the exchange to continue operating normally.

On December 8, the day the firm was placed under administrative control, stock exchange directors for the first time sent an email to the company’s clients with a bailout plan.

The Australian cryptocurrency exchange will be able to continue to trade and operate as normal thanks to the “Company Deed Agreement”, which stipulates that the exchange will obtain a loan from a related company, Digico, in the amount of A$1.25 million ( $884,543). ).

KordaMentha’s administrators issued a statement saying that payments to creditors will be made from the exchange’s quarterly net earnings over the course of the next five years.

According to a January 24 article by Business News Australia, KordaMentha was quoted as saying that day that “clients would be compensated in cryptocurrency and fiat, depending on the asset composition of their particular claims.”

In addition, it was stated that “we anticipate that additional notification will be sent to all customers as the administration process with KordaMentha unfolds.”

The Brisbane-based cryptocurrency exchange had been in business since 2017, but in November it became one of the victims of the FTX crash. The exchange froze withdrawals and deposits just days after FTX filed for bankruptcy and FTX Australia was placed under administration.

At the time, Digital Surge indicated that they had “some limited exposure to FTX” and would inform customers within two weeks; however, this exposure was later found to be about $23.4 million, according to KordaMentha.

Despite having a significant amount of exposure to FTX, the exchange is one of the few cryptocurrency companies that has developed a concrete strategy to restore operations and avoid insolvency.

Since November, several cryptocurrency companies, including cryptocurrency lending companies BlockFi and Genesis, have sought protection under Chapter 11 of the United States Bankruptcy Code as a result of their exposure to the impact of FTX and market instability.