Aussie Crypto platform cancels $1 billion merger plan after FTX crash: Report

Australian cryptocurrency exchange – Swyftx – and investment platform – Superhero – have reportedly abandoned a previously planned $1 billion merger deal.

Some of the main reasons are the increased scrutiny of crypto companies in Australia and the decrease in interest in digital assets after the spectacular collapse of FTX.

Swyftx takes another hit

Such as mentioned From The Australian Financial Review, Swyftx will sell Superhero back to its founders – John Winters and Wayne Baskin – and a group of investors for an undisclosed amount.

The end of the collaboration comes a few weeks after the exchange insist on A billion-dollar merger deal between the two entities is still on the agenda.

Co-Founder Winters thanked all the investors involved and his family and friends for helping Baskin get their idea back on track. The CEO cited reduced appetite for cryptocurrency products and services as the main reason for the closed deal.

He added that the tough stance taken by Australian watchdogs towards digital asset firms and the collapse of FTX were also key drivers:

“Investor sentiment returns to quality. Our vision is to return to traditional long-term investments and give people access to these investments and more transparency and control over their pensions through our premium product.”

Other sources open Swyftx has significant exposure to Binance. According to the latest rumors, the US Department of Justice may trial The exchange allegedly facilitated money laundering actions, which could have resulted in Super Hero withdrawing from the agreement.

Swyftx CEO Alex Harper said the regulatory environment in Australia had changed dramatically in recent months, erasing the financial benefits of the merger:

The political environment has changed dramatically since we announced the merger, and neither party has been able to realize the vision of the merger in any meaningful way. We are currently facing a scenario where there may be no customer benefits from the merger until 2024 at the earliest. It’s a disappointing result, but we ultimately made this decision in the interest of both Superhero and Swyftx as well as their customers. “

The end of the partnership will also clear Swyftx’s $55 million debt to the investment platform.

Nearly half of the staff left

The exchange laid off 90 of its employees (about 40% of the total workforce) earlier this month to deal with a potential market downturn in the first half of 2023.

CEO Harper emphasized that his company has no direct exposure to bankrupt FTX and raised hopes that the changes will help it get through the current difficult times.

Aussie Crypto Platform Cancels $1 Billion Merger Plan After FTX Crash: Report appeared first on CryptoPotato.

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