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Superhero Cans Merger with Swyftx Citing Regulatory Scrutiny

Superhero assured its users that their funds are secure and that no personal information or assets were given to Swyftx.

With more regulators looking into the crypto space as the FTX debacle continues, the $1.5 billion merger of online investing platform Superhero and Australian crypto exchange Swyftx has been put on hold.

Superhero stated in an email to its customers that it will not proceed with its merger with the cryptocurrency exchange. According to the company, this is due to increased regulatory scrutiny in Australia and around the world. They stated:

“As a result of the current environment, we have determined that it is in the best interests of our Superhero customers to unwind the merger and continue as a separate, unrelated company.”

Swyftx was not given any of its users’ data or assets, so their funds are safe, according to the company.

On June 8, the companies announced their merger and revealed plans to allow trading between traditional and crypto assets. Swyftx co-CEO Ryan Parsons previously told Cointelegraph that the merger’s long-term goal is to investigate interoperability between asset classes. Things, however, did not go as planned.

Months later, the cryptocurrency exchange announced a number of layoffs. On August 19, the company cut 21% of its workforce, citing the bear market, inflation, and a recession as reasons. On December 5, the company announced that it had laid off another 35% of its workforce, claiming that while it was not affected by FTX, it was affected by the fallout.

Members of the crypto community expressed a variety of emotions in response to the layoffs. One person predicted that it would happen, and that more bankruptcies would follow. However, one user encouraged Swyftx, saying that good things are on the way.

In the meantime, former FTX CEO Sam Bankman-Fried, who is currently imprisoned, has signed extradition papers. This means that the former FTX CEO will be handed over to the Federal Bureau of Investigation in the United States to face criminal charges.

 

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