TrigonX: The New Crypto Exchange Making Waves In The Post-FTX Era

Key Points:

• Australian crypto exchange TrigonX to relaunch after FTX collapse with debts exceeding $50 million.
• Return to creditors preferred over liquidation to avoid depletion of funds.
• Legal firm confirms FTX collapse and legal action taken against TrigonX.

TrigonX is an Australian cryptocurrency exchange that is set to relaunch after it collapsed in December 2022.

The exchange was just one of many that was affected by the sudden collapse of FTX in November of the same year. TX had to appoint administrators on Dec. 16, 2022, after it was unable to meet withdrawal demands. However, a deed of company arrangement was approved by creditors, which has paved the way for TrigonX to be revived.

According to a report by The Australian published on May 29, TrigonX director Matteo Salerno said that the exchange is on track for a comeback. He added that a return to a “better, more certain and expedient dividend” to creditors would be a desirable outcome than liquidation. Salerno explained that if the company were to be liquidated, funds would be tied up in the administrator’s control for many years, which would result in the substantial depletion of funds available to be distributed for the benefit of creditors.

TrigonX’s failure was caused by several factors, including the collapse of FTX, according to a report by legal firm Kroll. The collapse of FTX was a significant blow to many cryptocurrency exchanges, and TrigonX was no exception. In addition to this, TrigonX faced legal action taken against the firm by customers for the return of funds.

Kroll also investigated several large transactions before the collapse of FTX, these were to Salerno himself and his wife. Salerno explained 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. It is clear that the collapse of FTX had a significant impact on TrigonX and that the exchange is still working to rebuild its reputation.

Sydney-based investor King River Capital is among the creditors that is owed money by TrigonX. The firm is fighting to claw back $9 million from TrigonX, which it did not authorize to trade with FTX at the time, according to an April AFR report. This highlights the challenges faced by cryptocurrency exchanges in the wake of the FTX collapse.

Australian cryptocurrency 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, Digital Surge creditors approved a five-year bailout plan while allowing the firm to continue operating. While the future of TrigonX is uncertain, it is clear that the cryptocurrency industry is still recovering from the impact of the FTX collapse, and that many exchanges are still working to regain the trust of their customers and creditors.

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