Australian crypto exchange suspends withdrawal

[Dave1]

Australian based crypto exchange Digital Surge said:

"Due to the impact of FTX Australia's administration, we are not able to operate business as usual and have suspended all deposits and withdrawals until further notice," Digital Surge said in a message on its website.

"Our current priority is to protect and support you, our users, and keep you informed as the situation develops."

In an email to customers the exchange said it "does hold some limited exposure to FTX" and was "working hard to understand the situation as it relates to our users".

https://nz.finance.yahoo.com/news/aust-crypto-exchange-suspends-withdrawals-041232691.html

Not sure if anyone here heard about this Australian crypto exchanges, but I don't like the sound of it.

They admitted that they have been exposed to FTX and we already know what have happen to them.

And if anyone here is not aware of this message from Theymos: Reminder: do not keep your money in online accounts.

[casinotester0001]

Aust crypto exchange suspends withdrawals


A Brisbane-based crypto exchange has suspended withdrawals, citing spillover from the collapse of FTX.

"Due to the impact of FTX Australia's administration, we are not able to operate business as usual and have suspended all deposits and withdrawals until further notice," Digital Surge said in a message on its website.

"Our current priority is to protect and support you, our users, and keep you informed as the situation develops."

In an email to customers the exchange said it "does hold some limited exposure to FTX" and was "working hard to understand the situation as it relates to our users".

The company didn't immediately return an email seeking comment.Â

The notice said it expects to provide a further announcement on the situation within 14 days.

Founded in 2017, Digital Surge says it offers a fast and easy way for Australians to exchange cryptocurrency. It has 22 employees listed on LinkedIn.

The No.3 crypto exchange globally, FTX filed for bankruptcy last week in the United States and could have up to 1 million individual creditors.


source: https://www.sheppnews.com.au/aap-finance/aust-crypto-exchange-suspends-withdrawals/

[CryptoHeadlineNews]

Australian based crypto exchange Digital Surge said:

And if anyone here is not aware of this message from Theymos: Reminder: do not keep your money in online accounts.

Thanks for sharing this very insightful and informative thread by the forum admin Sir "Theymos", as there was a whole lot to learn from it, knowing that exchanges are never the best place to save our funds. Because this shows that he/she truly cares about the well-being of every one of us here on this forum. And secondly, the news about FTX is not new anymore, as its equally been 5days since it went viral, leading to the major cause of the recent fall in the price of Bitcoin to $16,000

[franky1]

if an exchange was using its well earned trading fees (the exchanges business profits) to then invest in FTX where those business profits are now finito(gone).
then thats just bad business for its internal management team

the only positive scenario of possibilities is..
.. if the exchange was not operating on its own licence but acting as an agent of another exchanges licence(ftx) where that licence got suspended thus the agent had to stop offering market services too

however. it appears digital surge does have its own licence.. so by suspending its customers access to do a bank run/withdraw.. means it must have used customer deposits (not trade fees) in FTX

which is not just bad business.. but unethical and should not be done ever

..
well we hopefully should get clarity within 14 days of actual events of this latest snowball

[stompix]

And secondly, the news about FTX is not new anymore, as its equally been 5days now since it went viral, leading to the major cause for the recent fall in the price of Bitcoin to $16,000

Doesn't matter!

This is about a different exchange, in this case, Digital Surge that is in trouble because of FTX.
Even if it will be 3 months since the crash of FTX if an exchange goes down because of them it's still news!

Interesting that while the customers have been announced there is no social media post from the owners of the exchange at all right now and the announcement is in the client area.

Due to the impact of FTX Australia's administration, we are not able to operate business as usual and have suspended all deposits and withdrawals until further notice,

More like because of this:

The Australian Securities and Investments Commission on Wednesday said it had suspended the licence of FTX Australia until May 15 next year after it was placed into voluntary administration on Friday.

[DdmrDdmr]

It could well be that FTX acted as a liquidity provider to Digital Surge. Their TOS cite this possibility, though there is no explicit reference to any names. The suspension of FTX Australia’s AFS licence may have left them without this or other services that FTX may have been providing, leaving their ops crippled. That is besides the exposure they may have had.

Possibly in a similar fashion, a popular, yet not very large, Argentinean Exchange call Quantia has frozen all withdrawals due to liquidity problems, stating that FTX was one of their service providers. Exposure aside.

[franky1]

It could well be that FTX acted as a liquidity provider to Digital Surge. Their TOS cite this possibility, though there is no explicit reference to any names.

im reading some of their terms.. dang.. nasty

We reserve the right to modify, permanently or temporarily disable, or discontinue any part of our Services and to alter, amend or withdraw any part of these Terms, the Privacy Policy, or any information or material appearing on our Services at any time, without liability or further notice to you. Your continued use of our Services will constitute an automatic acceptance of any alterations, withdrawals or amendments made by us.

in short. no TOS update announcement with an accept button. no 14-day consideration time to accept new terms or withdraw. no hint

You agree, authorise, direct and consent to us holding to your account all fiat currency and cryptographic tokens you send or transfer to us. You further acknowledge and agree that:

    we hold the legal title to all fiat currency and cryptographic tokens which we hold to your account;
    under the law, your right to recover any fiat currency or cryptographic tokens which we hold to your account is an unsecured debt owed by us to you; and
    if we become insolvent, you may be entitled to make a claim for the recovery of that debt, but there is no guarantee that you will be successful in recovering any part of that debt.

nasty..
in short
it doesnt read as a
"your deposits remain your title up-until the point of sell. we simply manage the sells orders, whilst also securing your deposits to ensure we can release those deposits back when there is a withdrawal request"


if reads as
"you dont own your coins any more, we do. we can decide and change the terms of any debt without telling you. and the only way to possibly get something out of us is trying in court to convince a judge that we owe you them and also then hope we pay them after judgement.."

remember folks
"not your keys, not your coins"
these terms of services are a prime example of this

[Minor Miner]

It wouldn't be too surprising if in the coming days we would see news of other exchanges or lending platforms suspending withdrawals or declaring bankruptcy. BlockFi, a lending platform that was also a victim of the FTX crash after blocking withdrawals, is also considering filing for Chapter 11 bankruptcy just like FTX. The death of FTX is so big, it's a lot bigger than Mt.gox or luna caused, I believe we will see many more incidents related to FTX crash generated in the near future. At the moment, withdrawing all assets to a non-custodial wallet is the only way we can do it.

[franky1]

It wouldn't be too surprising if in the coming days we would see news of other exchanges or lending platforms suspending withdrawals or declaring bankruptcy.

even without "exposure" to FTX, many companies with their own problems or simply wanting to "cut and run"(retire) with their own customer funds have previously (in mtgox saga days) just declared closing their services and blaming it on the latest saga

[kryptqnick]

FTX was and remains a big story on its own, and now it turns out that it can affect other exchanges as well... I hope that the Australian exchange just acted out of a precaution, deciding to opt for limiting deposits and withdrawals, so that people don't start withdrawing their coins too much in panic, causing a collapse. That being said, while I knew that exchanges could play with the money of their customers, I didn't think that reputable exchanges would actually do that. Why not just get profits out of the fees and advertising but keep the money of customers intact, so that anyone can always withdraw their coins if they wish to do so because the coins weren't used for other purposes?

[krishnaverma]

Australian based crypto exchange Digital Surge said:

"Due to the impact of FTX Australia's administration, we are not able to operate business as usual and have suspended all deposits and withdrawals until further notice," Digital Surge said in a message on its website.

"Our current priority is to protect and support you, our users, and keep you informed as the situation develops."

In an email to customers the exchange said it "does hold some limited exposure to FTX" and was "working hard to understand the situation as it relates to our users".

https://nz.finance.yahoo.com/news/aust-crypto-exchange-suspends-withdrawals-041232691.html

Not sure if anyone here heard about this Australian crypto exchanges, but I don't like the sound of it.

They admitted that they have been exposed to FTX and we already know what have happen to them.

And if anyone here is not aware of this message from Theymos: Reminder: do not keep your money in online accounts.

I checked the site and there are already lot of red flags

1) It allows sign up on the exchange with a Facebook account. So if your Facebook account is compromised, your crypto is also gone.

2) There is no such notice of suspension of deposit and withdrawal. It is still allowing new registrations. What for ? Getting their personal data and KYC ?

Always do your research before making an account on an exchange. So far among the exchanges all over the world, I only have hopes left with Binance. They have even posted their proof of funds recently online which shows that they should not just fail all of sudden. I can understand that people like to use exchanges specific to countries but this should be done at the cost of security of funds and personal information.

[Zlantann]

FTX was and remains a big story on its own, and now it turns out that it can affect other exchanges as well... I hope that the Australian exchange just acted out of a precaution, deciding to opt for limiting deposits and withdrawals, so that people don't start withdrawing their coins too much in panic, causing a collapse. That being said, while I knew that exchanges could play with the money of their customers, I didn't think that reputable exchanges would actually do that. Why not just get profits out of the fees and advertising but keep the money of customers intact, so that anyone can always withdraw their coins if they wish to do so because the coins weren't used for other purposes?

Most of the CEOs of these exchanges are not sound in financial and risk management. They seem to be strictly controlled by profits that's why they keep making costly financial blunders. Some of their investment and offers are very risky, making them operate like Ponzi schemes.

I am predicting that more exchange companies that are financially connected to FTX would also have problems. If they have gone bankrupt, they must ensure that their customers get their funds back.  Currently, I don't think there is any reputable exchange that can be trusted, I might be wrong

[franky1]

digital surge is quoted to also only have 1m customers
FTX only had 1m customers

binance has over 25m customers
coinbase has over 60m customers.

FTX is not a big deal due to affected customer numbers. its not more popular to coinbase/binance based on affected customer numbers.

FTX was just more of a "whale" customer base.
where instead of minnows depositing $5-$500.. DTX customers were depositing $10k(average)-$400m(top investors)

digital surge has similar customer numbers to FTX but is more of a minnow play who deposit minimum of $2

FTX is only getting big media coverage, due to WHO is invested not how many
EG kevin o'leary of sharktank invested
binance invested
digital currency group invested

and many other exchanges

[OcTradism]

It's a bad news but unavoidable domino effect from FTX collapse.

If you don't trade daily and only hold your crypto, it is no reason to keep your crypto on any exchange even it is Binance during the chaotic time.

If you are trading daily, you should choose big ones like Binance (if you trust them). But skip trading for a few weeks, few months don't make you die and it is not harmful if you skip trading to withdraw your cryptocurrency out of exchanges at this moment.

Before this storm goes away, it is a safest choice.

[franky1]

It's a bad news but unavoidable domino effect from FTX collapse.

If you don't trade daily and only hold your crypto, it is no reason to keep your crypto on any exchange

normal people are too indoctrinated that banks insure their customers value.. so think the cryptosphere of custodians must too..
people dont trust themselves to keep their wealth/value in their own homes under lock and key. they prefer to secure it in a business they THINK is insured and will pay out no matter what

people need to read the TOS of custodians to see how custodians treat customer deposits
and for this decade realise that NO crypto custodian/exchange in the cryptoshpere has a government insurance plan to bailout peoples account amounts

[so98nn]

More and more exchangers are failing with the time, but why would the fail of it affects the other exchangers? FTX is not just one who has its token listed everywhere but many. Others to keep failing all the time but it does not mean an exchanger needs to shut down it’s operations until the further notice. That’s really interesting fact we have started to realise now.

Is it going to be aftermath of FTX event or is it the event that every other administration is using as up front curtain to halt their operations for time being? Weird?

[Husires]

im reading some of their terms.. dang.. nasty

We reserve the right to modify, permanently or temporarily disable, or discontinue any part of our Services and to alter, amend or withdraw any part of these Terms, the Privacy Policy, or any information or material appearing on our Services at any time, without liability or further notice to you. Your continued use of our Services will constitute an automatic acceptance of any alterations, withdrawals or amendments made by us.

in short. no TOS update announcement with an accept button. no 14-day consideration time to accept new terms or withdraw. no hint

What will happen if part of the terms of use violate the laws of the country from which the license was issued?
All countries have laws that say in the event that these laws conflict with local laws, the local law is binding.

The snowball has begun to roll, and it is easy for those who want to defraud people to claim that the platform is exposed on that platform, especially with such stupid terms of use.

[348Judah]

With the current happenings with centralized exchanges, many investors were already playing safe by taking their asset off some of these exchanges atter learning from others experience and with this dip season in bitcoin price, it has appear as a bubble burster of many centralized exchanges and people are getting more exposed of there way of operations to thier disadvantaged, within one wee about $3.7 millions  worth of assets had been evacuated from exchanges into wallets because of this recent happening that jas taught them a lesson.

[buwaytress]

Never heard of them, but as I mentioned in another FTX thread yesterday, Malaysians I knew lost their jobs overnight, so it's obvious they had quite a few roots in Asia and the Pacific. It will be another few more weeks I think until we see the true extent of FTX's reach -- their direct investments would have been known by now but the 2nd and 3rd level reaches will only become clear as they become known.

Reading about "funds of funds" about to report/reveal their exposure in coming quarter reporting.

[Zaguru12]

even without "exposure" to FTX, many companies with their own problems or simply wanting to "cut and run"(retire) with their own customer funds have previously (in mtgox saga days) just declared closing their services and blaming it on the latest saga

This certainly what I could wrap my head around. I think there were existing problems in these companies and they already made their mind up but had to for this perfect time to pounce on it. At least it will get rid of some of them fake exchanges my only concern is peoples funds on it and how it will affect bitcoin. We could still hear of more exchanges taking this route as the days go by