Breaking: Binance Backs Out Of FTX Deal

In a recent turn of events, Binance has officially stated that, they would not be pursuing the FTX buyout any further.

This comes after, the Binance team’s due diligence on the internal workings of the debt-ridden FTX exchange and news reports of mismanagement of user funds, plus alleged investigations undertaken by the U.S. authorities.

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.

— Binance (@binance) November 9, 2022

The official Twitter account of Binance further stated:

“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.”

Earlier today, CoinGape reported that FTX’s poor financial records raised concerns among Binance’s top executives and that they might eventually drop out of the deal.

In what appeared to be a potential bailout of the troubled exchange, under a liquidity constraint, Binance signed a letter of intent on Tuesday to acquire its ailing rival, FTX. However, that plan failed a little more than 24 hours later.

Reacting to the news, and the uncertainty surrounding user funds, FTX’s native token — FTT, has spiraled down to $1.74 at the time of writing.