Australian investment platform Superhero has assured users that their funds are safe and that neither personal information nor assets are shared with cryptocurrency exchange Swyftx.
As more regulators turn to the crypto space following the FTX debacle, the $1.5 billion merger between Australian online investment platform Superhero and Australian crypto exchange Swyftx is on hold.
In an email to clients, Superhero said it would not go ahead with the merger due to increased regulatory scrutiny of cryptocurrencies in Australia and around the world, writing:
The company has also ensured that the user’s funds are safe as neither the user’s data nor assets are provided to his Swyftx. The companies first announced their merger on June 8th, revealing plans to allow 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 didn’t go as planned.
After months, the cryptocurrency exchange announced multiple layoffs. The company cut its workforce by 21% on Aug. 19, citing a bear market, inflation, and a possible global recession. On Dec. 5, the company announced it had laid off an additional 35% of its workforce, saying it had not been exposed to FTX but was “inevitable” to its effects.
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.
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 and prosecuted in the United States.
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