Superhero cans merger with Swyftx citing regulatory scrutiny

With much regulators eyeing the crypto space arsenic the FTX debacle continues, the $1.5 cardinal merger of online investing level Superhero with the Australian crypto speech Swyftx was shelved. 

In an email to its customers, Superhero highlighted that it volition not beryllium proceeding with its merger with the crypto exchange. According to the company, this is due to the fact that of heightened regulatory scrutiny wrong Australia and globally. They wrote:

“As a effect of the existent environment, we person decided that the champion happening for our Superhero customers is to unwind the merger and determination guardant arsenic a separate, unrelated company.”

The steadfast besides assured its users that their funds are safe, arsenic neither their information nor their assets were provided to Swyftx.

The companies archetypal announced the merger connected June 8 and revealed plans to alteration trading betwixt accepted and crypto assets. Back then, Swyftx co-CEO Ryan Parsons told Cointelegraph that the semipermanent extremity for the merger is to research interoperability betwixt plus classes. However, things did not enactment retired arsenic planned.

Months later, the crypto speech announced respective layoffs. On Aug 19, the steadfast cut its unit by 21%, citing the carnivore market, ostentation and a recession arsenic its reasons. On Dec. 5, the steadfast announced that it has laid disconnected different 35% of its employees, saying that portion it wasn't exposed to FTX, it was besides affected by the fallout.

Related: No much proof-of-reserve checks? Auditors softly driblet crypto projects from portfolios

After proceeding astir the layoffs, crypto assemblage members reacted with assorted sentiments. One believed that it was bound to hap and much bankruptcies whitethorn follow. However, a idiosyncratic besides gave Swyftx immoderate encouragement, saying that bully things are coming.

Meanwhile, erstwhile FTX CEO Sam Bankman-Fried, who is presently successful jail, has signed extradition papers. This means that the erstwhile FTX CEO volition beryllium turned implicit to the Federal Bureau of Investigation to look transgression charges successful the United States.