Crypto Frontline

Australia – Investors of superannuation and savings, face losses amounting to $1.4 billion because of the fallout of the cryptocurrency FTX. 

Dad and mom investors and pensioners faced big shortfalls in their savings and superannuation after they invested in the mostly unfettered cryptocurrency markets in the wild west. Alan and Sharon Saul are terrified investors who are from Brisbane. This self-employed couple in their 60s has around one-quarter of their retirement tied to Digital Surge, a crypto broker based in Brisbane, which amounted to $50,000. 

Digital Surge stopped the accounts of everybody earlier this month as it does via liquidity issues. It means Alan and Sharon can’t use their funds. Sharon questions what will happen now and what the couple will do with their money. She shared how worried she is about what happen next. 

The troubles that Digital Surge experienced are linked to the crisis FTX had after collapsing. FTX lets people trade in cryptocurrency markets with no state-back-ups in a centralized way, which is like investing in shares. 

Tom Brady and Larry David promoted the company, but FTX proclaimed bankruptcy in early November after disclosures about the business methods, which customers led to a bank run. Those who had funds in FTX are lost after losing over $500,000. On the other hand, values of the so-dubbed coins at the center of digital asset markets continue to drop, which already happened before the collapse of FTX and its CEO, Sam Bankman-Fried. 

The current woes of Digital Surge display the ripple effect, and it had cryptocurrency like FTX. The company had limited coverage to FTX. The company controls the funds as people trade in cryptocurrency. 

Digital Surge should have revealed how much it caught up with the bankrupted FTX. It has yet to determine whether it can get the money back for its clients in AUD or Australian dollars. According to the broker, they are now reaching out to advisors in the United States or the US for FTX and will update their customers about the situation. 

Since Digital Surge bills itself as an uncomplicated way for people to spend in cryptocurrency, it includes the SMSF or Self-managed Super Funds. It’s where someone chooses what to invest in their retirement savings, including the volatile digital asset market. There were around $867 billion in assets in SMSF, per the latest figures by ATO or the Australian Tax Office. $1.4 billion is in the recently developing space for digital assets. It came up immediately off a low ground while the number was small.