TrigonX, an Australian crypto exchange that collapsed in December 2022 with significant debts exceeding $50 million, is poised for a revival after creditors approved a deed of company arrangement. Matteo Salerno, the company director, stated that relaunching the exchange under this arrangement would provide a more favorable outcome for creditors compared to liquidation.
The collapse of FTX in November 2022 had a cascading effect on numerous digital asset exchanges, including TrigonX, which was unable to meet withdrawal demands and subsequently appointed administrators on December 16, 2022. A report by legal firm Kroll revealed that TrigonX’s failure was influenced by multiple factors, including the collapse of FTX and legal action taken by customers seeking the return of their funds.
Salerno clarified that certain payments made to himself and his wife, which were scrutinized in the Kroll report, were intended to update employee entitlements in anticipation of the company’s pending sale. The aim of the receivership was to achieve an expedient outcome that benefits the creditors, as liquidation would have tied up funds for an extended period, leading to a substantial depletion of available distributions.
TrigonX revival
Among TrigonX’s creditors is Sydney-based investor King River Capital, which is seeking to recover $9 million that was not authorized for trading with FTX at the time, as reported by the Australian Financial Review in April.
The case of TrigonX follows the near-collapse of another Australian crypto exchange, Digital Surge, which narrowly avoided financial ruin in the aftermath of the FTX meltdown. In January, Digital Surge creditors approved a five-year bailout plan, allowing the exchange to continue operating.
The revival of TrigonX signals a potential recovery for the exchange and offers a glimpse of resilience within the Australian crypto industry. As regulatory oversight and investor protection measures continue to evolve, exchanges are working to navigate challenges, learn from past incidents, and provide a more secure trading environment for cryptocurrency users in Australia.
