With more regulators keeping an eye on the crypto space as the FTX debacle continues, Australian online investment platform Superhero’s $1.5 billion merger with Australian cryptocurrency exchange Swyftx has been shelved.
In an email to clients, Superhero said it will not go ahead with the merger due to increased regulatory scrutiny of cryptocurrencies in Australia and around the world.:
“As a result of the current environment, we have decided that it is in the best interest of our Superhero customers to undo the merger and move forward as a separate and unrelated company.”
The firm also assured users that their funds are safe, as neither your data nor your assets were provided to Swyftx.
The companies first announced the merger on June 8, revealing plans to allow trading between traditional assets and crypto assets. At the time, Ryan Parsons, co-CEO of Swyftx, told Cointelegraph that the long-term goal of the merger was to explore interoperability between asset classes. However, things did not go as planned.
Months later, the cryptocurrency exchange announced several layoffs. On August 19, the company reduced its workforce by 21%citing the bear market, inflation and a possible global recession. On December 5, the firm announced that it had laid off another 35% of its employees.saying that although he had no exposure to FTX, he was “not immune” to the consequences.
After learning of the layoffs, members of the cryptocurrency community reacted with mixed sentiments. One said it was bound to happen and more bankruptcies could follow. Yet another cheered Swyftx on, saying good things were coming.
Meanwhile, former FTX CEO, Sam Bankman-Fried, who is currently in jail, has signed the extradition papers. This means that will be turned over to the Federal Bureau of Investigation to face criminal charges in the United States.
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