Superhero and Swyftx abandon their $1.5 billion merger.
Superhero CEO stated that the decision to cut ties with Swyftx was motivated by declining demand for crypto exposure.
The plan was announced in June as a "historic merger" that would result in a $10 billion "digital and traditional finance powerhouse" with over 800,000 customers under one roof.
The cancellation comes after the Australian Securities and Investments Commission (ASIC) filed a lawsuit against three cryptocurrency-related companies: BlockEarner, BPS Financial, the company behind the Qoin digital token, and financial product comparison website Finder.com.
Meanwhile, the government is taking steps toward tightening crypto regulations next year by soliciting comments and feedback for a consultation paper.
"The current regulatory situation and market turbulence have made it more challenging to realize the original vision that sparked the merger earlier this year," said Superhero CEO John Winter. "Superhero will once again be owned independently by myself and my co-founder Wayne Baskin."
The collapse of several high-profile companies, including crypto exchange FTX and crypto lender Voyager Digital, as well as a decline in the crypto market, aren't assisting the situation. Swyftx cut 90 jobs, or 35% of its total workforce, earlier this month due to the market downturn.
"The ongoing regulatory uncertainty surrounding crypto-assets, combined with rising regulation-by-enforcement, does not foster an environment where mergers of more traditional businesses and crypto-native companies can easily occur," said Michael Bacina, a partner at law firm Piper Alderman.
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