Crypto exchange Digital Surge emerged as a rare survivor of the FTX fallout.

Australian cryptocurrency exchange Digital Surge appears to have avoided collapse despite holding millions of dollars in digital assets in the now-bankrupt FTX crypto exchange.

On January 24 local time, Digital Surge’s creditors approved a five-year bailout plan, which aims to eventually return its 22,545 customers who had frozen their digital assets on the platform since November 16. While the exchange was allowed to continue functioning.

The rescue plan was first presented to customers by the exchange’s directors via email on December 8, the same day the company went into administration.

According to the “Deed of Company Arrangement”, the Australian crypto exchange will receive a loan of $884,543 (1.25 million Australian dollars) from an affiliated business, Digico — allowing the exchange to continue trading and operating.

In a statement, Korda Mentha administrators said the lenders would be paid out of the exchange’s quarterly net profits over the next five years.

“Customers will be paid in cryptocurrency and fiat currency, depending on the asset composition of their individual claims,” ​​KordaMentha said. According to Business News Australia reports on 24 January.

Cointelegraph reached out to Digital Surge, who confirmed that at the second meeting of creditors on January 24, a resolution was voted in favor of the rescue plan.

“We expect to provide further communication to all customers as the administration process with Corda Mentha moves forward.”

The Brisbane-based crypto exchange had been operating since 2017 but became one of the casualties following the collapse of FTX in November. Frozen returns and deposits A few days after FTX filed for bankruptcy and FTX Australia was placed into administration.

At the time, Digital Surge explained that they had “some limited exposure to FTX” and would update users in two weeks’ time – although later, according to Digital Surge administrator KordaMentha, it was around 23.4 million. Dollars revealed.

Related: ‘There’ll be many more zeroes’ – Kevin O’Leary is about to fall like FTX.

The exchange is one of the few crypto firms that has a solid plan to resume operations and avoid liquidation despite FTX’s massive exposure.

Since November, several crypto firms, including crypto lending firms BlockFi and Genesis, have filed for Chapter 11 bankruptcy protection in the wake of FTX and market turmoil.