News24.com | Luno mulls public listing as long-time CEO steps down

Luno is eyeing a potential stock market listing.

• Cryptocurrency exchange Luno is considering a public listing, according to its new CEO.
• James Lanigan took the role from co-founder Marcus Swanepoel, a move cryptowatchers interpreted as preparation for a listing.
• Luno recently said it was retrenching 35% of its staff due to a downturn in the tech sector, falling crypto prices and the knock-on impact of the FTX saga.
• For more financial news, go to the News24 Business front page.

Cryptocurrency exchange Luno, one of the few South African-founded tech companies with a global footprint, is considering a public listing. 

"One of Luno’s ambitions is a potential public listing in the future," said its new CEO James Lanigan. "However, the timing and geographic details of a potential IPO (initial public offering) are unknown at this stage, but yes, we will be exploring all options."

Last week Lanigan took over as CEO from co-founder Marcus Swanepoel, a move some crypto watchers interpreted as preparation for a listing.

Swanepoel, who has been with the company since it was named BitX and operated out of an office park outside Stellenbosch, was named executive chair.

"Co-founding and serving as the CEO of Luno for the past 10 years has been the greatest honour of my career, and I’m excited for our next chapter as we continue to put the power of crypto in everyone’s hands," said Swanepoel in a statement.

Luno, today headquartered in London, was founded in 2013 by four South Africans as one of the country's first cryptocurrency exchanges. In 2020, it was bought by US-based blockchain investor the Digital Currency Group (DCG). 

Earlier this year, Luno announced it was retrenching 35% of its labour force due to a downturn in the tech sector, falling crypto prices and the knock-on impact of the meltdown and eventual bankruptcy of exchange FTX.

READ | As its US owner suffers $1bn loss, Luno moves to retrench 35% of workers

FTX's founder Sam Bankman-Fried was arrested in the Bahamas last year. He is facing criminal charges for allegedly stealing billions of dollars in customer funds to plug losses at his hedge fund Alameda, and making large illegal political donations to buy influence in Washington, D.C.

The Financial Times reported on Tuesday that executives at Genesis, a crypto lender that falls under Luno's parent company DCG, had early access to invest in cryptocurrencies Bankman-Fried helped launch, at a discounted rate before the crypto tokens were issued to the public. According to the publication, Genesis is FTX and Alameda’s biggest creditor and is owed R4.1 billion.

The DCG group reported a loss of $1.1 billion (R20 billion) last year. 

Luno SA's country manager Christo de Wit previously told News24 the exchange was run independently from its parent company and customer funds were segregated from corporate funds.

"Luno holds customers’ funds safely and securely independently of DCG and those funds remain accessible to customers at any time," he said.