Superhero cans merger with Swyftx citing regulatory scrutiny

With extra regulators eyeing the crypto area because the FTX debacle continues, the $1.5 billion merger of on-line investing platform Superhero with the Australian crypto trade Swyftx was shelved. 

In an electronic mail to its prospects, Superhero highlighted that it’s going to not be continuing with its merger with the crypto trade. According to the corporate, that is due to heightened regulatory scrutiny inside Australia and globally. They wrote:

“As a consequence of the present setting, we now have determined that the perfect factor for our Superhero prospects is to unwind the merger and transfer ahead as a separate, unrelated firm.”

The agency additionally assured its customers that their funds are protected, as neither their knowledge nor their property have been offered to Swyftx.

The firms first introduced the merger on June 8 and revealed plans to allow buying and selling between conventional and crypto property. Back then, Swyftx co-CEO Ryan Parsons informed Cointelegraph that the long-term aim for the merger is to discover interoperability between asset courses. However, issues didn’t work out as deliberate.

Months later, the crypto trade introduced a number of layoffs. On Aug 19, the agency lower its workers by 21%, citing the bear market, inflation and a recession as its causes. On Dec. 5, the agency introduced that it has laid off one other 35% of its staff, saying that whereas it wasn’t uncovered to FTX, it was additionally affected by the fallout.

Related: No extra proof-of-reserve checks? Auditors quietly drop crypto tasks from portfolios

After listening to in regards to the layoffs, crypto group members reacted with numerous sentiments. One believed that it was sure to occur and extra bankruptcies might comply with. However, a person additionally gave Swyftx some encouragement, saying that good issues are coming.

Meanwhile, former FTX CEO Sam Bankman-Fried, who’s at present in jail, has signed extradition papers. This implies that the previous FTX CEO might be turned over to the Federal Bureau of Investigation to face felony costs within the United States.