24/7 Cryptocurrency News

Breaking: Binance Might Scrap FTX Takeover Over Poor Internal Review

Sources claim, Binance may not proceed with the FTX buyout after first glance at books as the whole takeover hinges on due diligence.
Published by
Breaking: Binance Might Scrap FTX Takeover Over Poor Internal Review

After less than a day of assessing the company, cryptocurrency exchange giant Binance is very unlikely to proceed with its proposed acquisition of struggling rival FTX, according to a person with knowledge of the situation. Due diligence was a condition of Binance’s non-binding letter of intent for the acquisition, which was made public on Tuesday as FTX’s financial situation appeared to be spiraling out of hand.

After evaluating FTX’s internal data and loan agreements for around half a day, Binance has decided strongly not to pursue the deal, an anonymous source close to the company claimed.

Read More: SEC Probing FTX Liquidity Crunch, Snam Bankman-Fried Crypto Empire 

In response to these rumors, Patrick Hillmann, Binance’s Chief Strategy Officer stated:

“We’re just 36 hours into the due diligence process. Once we have completed that, we will make a decision based on what’s in the best interest of Binance’s users across the globe. We’ll share more information when we have a more substantive update to provide.”

Putting brakes on the deal would be another remarkable development in a week of drama. Earlier, CZ had stated that officials from FTX reached out to him as there was a significant liquidity crunch. In order to help cover this, Binance would be acquiring the whole of FTX.

The biggest exchange in the world, Binance, was the first to support FTX, but as the latter company gained more prominence, their partnership began to fall apart. The two executives had been criticizing one another on Twitter for a while, and on Sunday, Zhao announced that Binance would be selling its FTT holding, the native token of FTX exchange. They had received it as part of an exit from the company last year.

Advertisement

Share
Pratik Bhuyan

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset

El Salvador is now sitting on $482 million in unrealized gains in its Bitcoin holdings.…

October 5, 2025
  • Bitcoin News

Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force

The Bitcoin price has hit a new all-time high, after staging a monstrous rally since…

October 5, 2025
  • Bitcoin News

99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction

Bitcoin (BTC) is in profit on almost all of its supply, leading to discussion by…

October 5, 2025
  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025