TrigonX to Make a Comeback After FTX Collapse

TrigonX to Make a Comeback After FTX Collapse

Australian cryptocurrency exchange, TrigonX, is set to make a comeback after it was caught up in the wave of the FTX collapse in late 2020. Faced with debts exceeding $50 million, the exchange is now on the path to recovery following the approval of a deed of company arrangement by its creditors.

Matteo Salerno, the director of TrigonX, expressed optimism about the exchange’s resurgence, stating that it would be better for creditors to receive better and faster dividends instead of liquidation.

TrigonX’s revival was reported on May 29, after its creditors agreed to a deed of company arrangement.

Kroll, a legal firm investigating TrigonX’s collapse, revealed that it was due to the FTX collapse and legal actions from customers demanding the return of their funds. Kroll also investigated significant transactions involving Salerno and his wife before FTX’s collapse, which Salerno claimed were made to address employee entitlements in light of an impending sale of the company.

Among the creditors seeking to recover their funds is Sydney-based investor King River Capital, which aims to retrieve $9 million that TrigonX allegedly traded on FTX without authorization.

The revival of TrigonX is a testament to the resilience of the cryptocurrency industry and the determination of those involved to overcome setbacks. With the approval of the deed of company arrangement, TrigonX is poised to make a comeback, offering hope to creditors and rekindling faith in the cryptocurrency exchange sector.

Another Australian crypto exchange, Digital Surge, also narrowly avoided collapse after the FTX meltdown, with its creditors approving a five-year bailout plan.

Compiled by Coinbold