TrigonX Set to Relaunch Amid FTX Collapse Fallout

TrigonX, an Australian cryptocurrency exchange, is the latest success story to emerge from the FTX collapse, with the exchange set to relaunch following its demise in December with debts exceeding $50 million.

The Australian reported on May 29 that, according to company director Matteo Salerno, TrigonX is slated for revival after creditors approved a deed of company arrangement.

The digital asset exchange, founded in 2014, was among the many affected by the November collapse of the FTX. TrigonX appointed administrators on December 16 after it could not comply with withdrawal requests.

A return to a “better, more certain, and expedient dividend” to creditors, according to Salerno, would be preferable to liquidation.

“A liquidation would have been likely to tie up funds held in the administrator’s control for many years. This would have resulted in the substantial depletion of funds available to be distributed for the benefit of creditors.”

He added that the purpose of the receivership was to “obtain a swift and optimal result for creditors.”

The legal firm Kroll confirmed in a report that the failure of Trigon was due to multiple factors, including the demise of FTX.

In addition, customers brought legal action against the company to recover their money.

Kroll also investigated several large transactions made to Salerno and his wife before FTX collapsed.

Salerno stated that the payments questioned in the Kroll report were made in “the context of bringing employee entitlements up to date,” given the company’s impending sale.

King River Capital, an investor based in Sydney, is one of the creditors. According to an April report in the Australian Financial Review, the company is attempting to recover $9 million from TrigonX, which King River had not authorized TrigonX to trade with on FTX.

In January, it was revealed that the Australian cryptocurrency exchange Digital Surge narrowly avoided collapse after the FTX meltdown despite holding millions of dollars in digital assets.

Creditors of Digital Surge approved a five-year rescue plan in January, allowing the company to continue operations.