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Superhero wants to merge with Swyftx citing regulatory review

Superhero wants to merge with Swyftx citing regulatory review

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With more regulators eyeing the crypto space in the wake of the FTX debacle, online investment platform Superhero’s $1.5 billion merger with Australian crypto exchange Swyftx has been put on hold.

In an email to its customers, Superhero emphasized that it will not go ahead with the merger with the crypto exchange. According to the company, this is due to increased regulatory scrutiny in Australia and around the world. They write:

“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 its users that their funds are safe as neither their data nor their assets have been made available to Swyftx.

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 didn’t 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 recession as the reasons. On Dec. 5, the company announced it had laid off an additional 35% of its employees and said that while it was not exposed to FTX, it was affected.

Related: No more reserve verification checks? Accountants are quietly removing crypto projects from portfolios

After hearing about the layoffs, members of the crypto community reacted with mixed feelings. It was believed that it would happen and more bankruptcies could follow. However, one user also encouraged Swyftx, saying good things are coming.

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

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