Binance pulls out of FTX acquisition

Steffy Bogdanova
November 10, 2022 10:18 am

Crypto giant Binance has announced that it will not be going forward with the acquisition of crypto exchange FTX. The company revealed that following due diligence checks, it has decided to back out of the deal.

Binance stated:

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

Earlier this week, Binance signed a non-binding agreement to acquire the non-US assets of FTX. The deal was pending due diligence and upon review, the company decided not go through with the transaction, citing ““mishandled customer funds and alleged U.S. agency investigations.”

Earlier this year, FTX was valued by private investors at $32 billion.

The proposed acquisition came after a massive liquidity crisis hit FTX which was a result of concerns with withdrawal issues and Binance’s decision to liquidate its entire holdings of FTX’s exchange token FTT.

Binance CEO Changpeng Zhao told his employees in as memo on Wednesday that he “did not master plan” the FTX’s demise. He highlighted that the collapse of FTX was “not good for anyone in the industry.”

The saga has been unfolding for only a couple of days now but cryptocurrencies have plummeted with bitcoin falling 15% on Wednesday. Ether has dropped more than 30% over the last two days.

LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
Tags:

Read Also: