As a result of the crypto market situation and regulatory scrutiny, Australian cryptocurrency exchange Swyft has merged with online investment platform Superhero.
The $1.5 billion merger of online investment platform Superhero with the Australian cryptocurrency exchange Swyftx was postponed because more authorities are looking at the cryptocurrency market as the FTX fiasco unfolds.
Superhero made clear in an email to its clients that it would not be moving through with its merger with the cryptocurrency exchange. The corporation claims that increased regulatory scrutiny both domestically and internationally is to blame for this. They penned:
“As a result of the current environment, we have decided that the best thing for our Superhero customers is to unwind the merger and move forward as a separate, unrelated company.”
The company also guaranteed the security of its customers’ finances by not giving Swyftx access to their assets or data.
On June 8, the firms initially declared their intention to join, along with their ambitions to permit trading between conventional assets and cryptocurrencies.
The long-term objective of the deal, according to Swyftx co-CEO Ryan Parsons at the time, is to investigate interoperability across asset classes. But things did not turn out as expected.
The cryptocurrency exchange confirmed many layoffs months later. The company reduced its workforce by 21% on August 19 and mentioned the bear market, inflation, and recession as justifications.
The company said on December 5 that it had let go of another 35% of its workforce, claiming that even though it had no contact with FTX, the aftermath had nonetheless had an impact on it.
Members of the cryptocurrency community responded to the news of the layoffs in diverse ways. One had the opinion that it was inevitable and that other bankruptcies may occur. Swyftx received some encouragement from a user, who added that wonderful things are on the way.
Sam Bankman-Fried, the former CEO of FTX who is presently incarcerated, has authorized extradition. Thus, the former CEO of FTX will be handed over to the Federal Bureau of Investigation to answer criminal charges in the United States.
