Superhero refused to buy crypto exchange Swyftx
2022.12.21 04:29
Superhero refused to buy crypto exchange Swyftx
Budrigannews.com – With additional controllers looking at the crypto space as the FTX disaster proceeds, the $1.5 billion consolidation of internet contributing stage Hero with the Australian crypto trade Swyftx was retired.
Superhero made it clear in an email to its clients that it will not proceed with its merger with the crypto exchange. The company claims that this is as a result of increased global and Australian regulatory scrutiny. 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.”
Since neither their assets nor their data were given to Swyftx, the company also assured its customers that their funds are safe.
On June 8, the companies made the merger official and announced that they would make it possible to trade traditional and cryptocurrencies. Ryan Parsons, co-CEO of Swyftx at the time, told Cointelegraph at the time that the merger’s long-term objective was to investigate interoperability between asset classes. Nevertheless, things did not go according to plan.
The crypto exchange announced a number of layoffs months later. The bear market, inflation, and a recession were cited as the reasons for the company’s 21% staff reduction on August 19. The company stated that even though it was not exposed to FTX, it was nonetheless affected by the fallout and that it had laid off another 35% of its workforce on December 5.
Members of the crypto community responded in a variety of ways when they learned about the layoffs. One person believed that it was inevitable and that additional bankruptcies might follow. However, Swyftx was also encouraged by a user who stated that good things were to come.
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In the meantime, extradition papers have been signed by the currently incarcerated former CEO of FTX, Sam Bankman-Fried. As a result, the former CEO of FTX will be handed over to the Federal Bureau of Investigation so that he can be tried in the United States for criminal offenses.
