Superhero And Swyftx:
Users of Superhero were reassured that their money was secure and that neither their assets nor personal information had been given to Swyftx.
The $1.5 billion merger of online investment platform Superhero with the Australian cryptocurrency exchange Swyftx was postponed because more regulators are looking at the cryptocurrency market as the FTX fiasco unfolds.
Superhero clarified in an email to its clients that it would not be moving forward with its merger with the cryptocurrency exchange. The corporation claims that increased regulatory scrutiny, domestically and internationally, is to blame for this. They penned:
“Due to the current situation, we have determined that dissolving the merger and continuing as a distinct, unconnected firm is best for our Superhero clients.”
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 first declared their intention to join, along with their plans 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 between asset classes. But things turned out differently than expected.
The cryptocurrency exchange confirmed many layoffs months later. The company reduced its workforce by 21% on August 19 and gave 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 still impacted it.
No more proof-of-reserve inspections, etc. Crypto projects are covertly removed from portfolios by auditors.
Members of the cryptocurrency community responded to the news of the layoffs in diverse ways. One held the opinion that it was inevitable and that other bankruptcies might occur. Swyftx received some encouragement from a user, who added that beautiful thing 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.