• Digital Surge, an Australian cryptocurrency exchange, has been bailed out after creditors approved a long-term recovery plan.
• The exchange had held $33 million on FTX, the cryptocurrency exchange that collapsed in November.
• In December, Digital Surge had passed into voluntary administration, a process in which the management hands over control to licensed insolvency practitioners.

Troubled Australian cryptocurrency exchange Digital Surge has been given a lifeline after creditors approved a long-term recovery plan. The Brisbane-based exchange had held $33 million on FTX, the cryptocurrency exchange that collapsed in November, according to a report in The Guardian.

Digital Surge had passed into voluntary administration in December, a process in which the management hands over control to licensed insolvency practitioners who assess the company’s assets and liabilities. The company was then able to secure a bail out that would allow it to pay back its creditors.

More than 22,000 of its customers had their digital assets frozen since November 16th and the bail out is expected to help them get their funds back. In addition, 25 prominent institutions in Australia have come together to start a research program to explore digital asset opportunities.

Michael Bacina, partner at law firm Piper Alderman, explains why the country is the prime location to test asset digitization. He said: “Australia’s progressive regulatory landscape and deep capital markets make it an ideal environment to foster innovation and develop digital assets.”

The bail out comes at a time when the cryptocurrency sector is seeing increasing interest from institutional investors. Institutional investors have been steadily increasing their investments in cryptocurrency, with the total amount invested in digital assets more than doubling in the past year.

The move is likely to further bolster the reputation of Australia as a prime destination for cryptocurrency investments. Australia has been making strides in the sector, with the Australian Taxation Office (ATO) recently announcing that it would treat cryptocurrencies like a form of property, rather than a currency.

The Digital Surge bail out is expected to help the company’s customers regain access to their funds, and help the cryptocurrency space continue to grow in Australia. It is a sign of the increasing interest in the sector and the potential for digital asset investments in the country.