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Crypto Platform Bitvo Closes Deal To Be Acquired By FTX

Bitvo says it has no exposure to FTX and is not part of the company’s bankruptcy proceedings

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Calgary-based cryptocurrency trading platform Bitvo Inc. made headlines in June when it agreed to be acquired by FTX Trading Inc. Capital, SoftBank Capital, Tiger Global.

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However, according to a statement by the Canadian company, Bitvo FTX’s plans to create a Canadian beachhead were scrapped following the latter’s spectacular collapse last week.

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“In light of recent events, Bitvo Inc. announces that its shareholder, Pateno Payments Inc., has terminated its previously announced agreement with FTX … pursuant to the terms of such agreement,” the statement said. said and added: The Canadian company has no material exposure to FTX, is not a party to the Bahamas-based cryptocurrency bankruptcy proceedings, and has never “owned, listed, or traded” FTX’s token, FTT.

“Since its inception, Bitvo has operated as an independent Canadian cryptocurrency trading platform,” the statement said.

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Under the terms of the company’s registration with Canadian securities regulators as a “restricted” dealer acquired in April, Bitvo operates on a full reserve basis. In other words, we never lend our clients money. The company is also registered with He FINTRAC as a Money Service Business in the Virtual Asset Service Provider category.

“Bitvo’s operations have not been and will not be affected (due to the FTX issue), and trading operations, withdrawals and deposits will continue seamlessly,” the company said in a statement on Tuesday.

When the acquisition by FTX was announced in June, the companies said Bitvo’s buying and selling and trading operations would be “combined into the FTX global team serving the Canadian market in a variety of capacities.”

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The acquisition was targeted to close in the third quarter, subject to regulatory approvals and customary closing conditions.

FTX founder Sam Bankman-Fried, 30, said in a news release that he is “delighted” to enter the Canadian market and continue to expand FTX’s global reach.

“Expansion into Canada is another step toward actively working with cryptocurrency regulators in various regions around the world,” Bankman-Fried said in June.

Regulators in the United States and the Bahamas are now investigating FTX amid allegations that millions of dollars in customer money have gone missing and the funds have been diverted to affiliated trading firms owned by Bankman-Fried. It is said that there are

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He stepped down as chief executive last week following a collapse that began with a liquidity crisis that left users unable to access their funds.

Major rival exchange Binance Holdings last week withdrew a proposed bailout. In a November 9th tweet, the larger cryptocurrency exchange said it would no longer acquire FTX. One reason for this is due to “news reports of mishandling of client funds and alleged investigations by US government agencies.”

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The red banner at the top of FTX’s website On Tuesday, the crypto exchange said it was unable to process withdrawals, adding that the company “strongly recommends deposits.” According to the website, all new client “onboarding” has been suspended until further notice.

FTX’s plunge has highlighted the second largest Canadian pension fund’s exposure to the crypto world.

The Ontario Teachers’ Pension Plan Board invested US$95 million in FTX in two tranches late last year and early this year. The pension manager, who held $242.5 billion in assets at the end of June, said last week that potential exposure is limited to less than his 0.05% of the plan’s total net worth.

In August, the Caisse de dépôt et placement du Quebec write off US$150 million investment in failed crypto lender Celsius Network LLC. Caisse CEO Charles Emond said at the time that Quebec pension funds were keen to “seize the potential of blockchain technology” and perhaps invested in Celsius “too early” in the company’s development. said.

• Email: bshecter@nationalpost.com | Twitter:



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Crypto Platform Bitvo Closes Deal To Be Acquired By FTX

Source link Crypto Platform Bitvo Closes Deal To Be Acquired By FTX

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