Investors Are Worried After They Risked a Part of Their Superannuation to Cryptocurrency

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Australians are investing their super fund to cryptocurrency experience frozen accounts. 

Most Australians, parents and pensioners are willing to risk their superannuation to the unregulated “wild west” of crypto markets. However, as Digital Surge recently froze all investors’ accounts due to liquidity issues, the investors grew frantic.

A series of questions were released like bullets from Sharon and Alan Saul, a Brisbane-based mum and dad who belong to the list of panicking investors.

“What happens now? What are we going to do with our money?” the wife told ABC News.

“I am really worried about what’s going to happen next,” she added.

It was then discovered that the issue of Digital Surge is connected to the collapse of FTX, a global crypto exchange company advertised by famous personas like Larry David. The company declared bankruptcy as November unfolds.

The present problems at Digital Surge demonstrate the global impact. According to the broker, it had digital assets – likely crypto – with FTX.

Digital Surge acquired investments from people’s superannuation by positioning themselves as a convenient means of investing in crypto. The investments are primarily from self-managed super funds where account holders have the free will to invest their savings in themselves, whether in a proper or the volatile crypto market.

$1.4 billion out of $867 billion worth of assets in SMSFs go to crypto. Sharon and Alan stuck to investing in the stock market for seven years. However, 18 months ago, they dared to delve into cryptocurrency.

Sharon and Alan stated that they established an SMSF for crypto trading using the Melbourne-based firm ESuperFund after it provided three years with no admin expenses. ABC has been asking for ESuperFund’s statement but to no avail. Yet, Digital Surge said that they have a data-sharing agreement with the company.

“I probably now need to keep on working and not being able to retire when we really wanted to,” Alan said.

Digital Surge lacks an Australian financial services licence (AFSL), which the broker said is because it is not required for bitcoin trading in Australia. It does have an ASIC business licence.

ABC News makes no claims that Digital Surge violated any laws.

“ASIC has repeatedly warned investors that crypto is incredibly risky, inherently volatile and complex,” said Sharon.

The couple plans to take out anything left of their money from the Digital Surge account as soon as their account works again.

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