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Binance Says It Will Walk Away From Deal To Buy FTX
Binance has scrapped its letter of intent to buy rival crypto exchange FTX, according to a Binance spokesperson.
Ankita K.
9:36 9th Nov, 2022
Markets

"As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com."

"In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help. Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.

"As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger," the spokesperson added.

Binance's withdrawal of its offer capped a whirlwind day-and-a-half in which the world's largest crypto exchange by volume agreed to bail out its troubled rival in the face of a liquidity crunch that was caused, in part, by Binance saying it would sell off all its holdings of FTX's exchange token FTT. CoinDesk had reported earlier that FTX's sister company, trading firm Alameda Research, had much of its balance sheet assets in FTT.



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