The Canadian cryptocurrency exchange Bitvo has ended its expected acquisition agreement with FTX to carry on operating individually.
Bitvo’s shareholder, Pateno Payments, has stopped the purchase cope with FTX Canada and FTX Buying and selling in compliance using the agreement terms, Bitvo announced on November. 15.
The firm emphasized that it is operations haven’t been affected as Bitvo doesn’t have material contact with FTX or any one of its affiliated entities. Bitvo buying and selling operations, including withdrawals and deposits, are intact.
Bitvo also stressed that it is not party towards the personal bankruptcy proceedings joined into by FTX and it is affiliated entities. Bitvo has additionally never owned, listed or traded the FTX Token (FTT) or “any similar token,” the announcement notes.
“Since beginning, Bitvo has operated being an independent, Canadian crypto asset buying and selling platform,” the organization mentioned, adding the platform is not offering lending or borrowing services:
“Bitvo runs using a complete reserve basis, meaning it doesn’t lend customer funds. Bitvo has always selected to function in this way, which is essential of Bitvo’s regulatory status like a Restricted Dealer registered using the Canadian Securities Managers […].”
As formerly as reported by Cointelegraph, the troubled cryptocurrency exchange FTX joined into a contract to buy Bitvo in June 2022 included in the company’s expansion plans in Canada. However the plan went wrong as FTX grew to become subject of the massive industry scandal, using the exchange misappropriating user funds for buying and selling on its sister firm Alameda.
On November. 14, Bitvo formally announced that it is acquisition by FTX was still being a pending transaction that wasn’t closed. “Digital assets are held with independent third-parties BitGo Corporation. and BitGo Trust Company, with more than 80% of assets locked in cold storage,” the organization stated.
“We are pleased the purchase did not close, it could have been devastating to the staff, and merely as importantly our customers,” Bitvo Chief executive officer Pamela Draper told Cointelegraph. The procedure between your announcement from the offer June involved trying to fulfill the closing conditions, the most important which was regulatory approval, she added.
“The Alberta Securities Commission is our principal regulator and Bitvo and FTX were dealing with them to get the needed approvals,” Draper stated.
While Bitvo seems to possess were able to back away the offer, there are several crypto companies which have been impacted by the FTX crisis because of being acquired through the crypto tycoon.
The FTX-owned crypto exchange Liquid suspended its fiat and crypto withdrawals on its Liquid Global platform regarding the FTX’s issues, based on the official statement released on November. 15. FTX acquired japan exchange and it is affiliates in Feb 2022.
Bankrupt crypto loan provider Voyager Digital required to Twitter on November. 16 to update its clients on reorganization efforts following a Chapter 11 filing by FTX and FTX US, proclaiming that customer election is going to be canceled and also the suggested purchase won’t move ahead. Voyager went bankrupt in This summer 2022, with FTX US obtaining its assets in September.
FTX US Derivatives, another subsidiary of FTX US formerly referred to as LedgerX, ongoing to provide fully-collateralized swaps, futures and choices on crypto, Chief executive officer Zach Dexter stated on November. 14. Also, he noticed that LedgerX isn’t incorporated within this personal bankruptcy filing by FTX. “Customer funds remain safe around the LedgerX LLC derivatives platform, which remains available 24/7,” Dexter noted in another tweet on Monday. As formerly reported, FTX US acquired LedgerX within an undisclosed offer August 2021.