Australian investment platform Superhero assured users that their funds are safe and that neither their personal information nor their assets will be shared with the Swyftx crypto exchange.
With more regulators watching the crypto space as the FTX debacle rages on, Australian online investment platform Superhero’s $1.5 billion merger with Australian crypto exchange Swyftx has been put on hold.
In an email to clients, Superhero said it would not proceed with the merger due to increased regulatory scrutiny of crypto in Australia and around the world, writing:
“Due to the current environment, we have decided that it is best for our Superhero customers to reverse the merger and move forward as a separate, independent company.”
The company also assured users that their funds are safe as neither their data nor their assets have been made available to Swyftx.
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The companies first announced the merger on June 8, revealing plans to enable trading between traditional and crypto assets. At the time, Swyftx co-CEO Ryan Parsons 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 crypto exchange announced multiple layoffs. On August 19, the company cut its workforce by 21%, citing the bear market, inflation and a possible global recession. On Dec. 5, the company announced it had laid off an additional 35% of its employees, saying that while it wasn’t exposed to FTX, it was “not immune” to the consequences.
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After hearing about the layoffs, members of the crypto community reacted with mixed feelings. One said it had to happen and more bankruptcies could follow. However, another encouraged Swyftx and said good things were to come.
Meanwhile, former FTX CEO Sam Bankman-Fried, who is currently in prison, has signed extradition papers. That means he will be turned over to the Federal Bureau of Investigation to be prosecuted in the United States.