Scoop: FTX Legal Staff Quitting En Masse Amid Binance Due Diligence

FTX Staff Quit News Updates: Amid a difficult scenario at FTX with the liquidity crisis, the company has news issues to deal with. According to latest reports, a majority of FTX’s employees in some important teams have resigned amid the exchange’s liquidity crunch. This comes amid Binance’s ongoing due diligence process in assessing FTX’s situation before deciding on the acquisition. Meanwhile, latest reports also indicate that Binance is not really interested in going ahead with the deal after its initial round of assessment.

FTX Staff Quit Amid Binance Assessment

As per a report by Semafor, bulk of the legal and compliance team at the Sam Bankman-Fried led exchange had quit on Tuesday. FTX has a total workforce of around 300 employees. The poor results in internal review will lead to Binance scrapping the FTX acquisition deal. If Binance does back out of the FTX deal, Sam Bankman-Fried could be looking at alternate options for coming out of the liquidity crisis. On top of this, FTX is facing legal troubles in the form of the U.S. Securities and Exchange Commission (SEC).

According to reports, the SEC authorities are closely looking at the way in which FTX handled customer funds in the context of its liquidity shortage. Also, the SEC is looking to find the connection between FTX US and Alameda Research. Alameda is a quantitative cryptocurrency trading firm that offers market-making services for several coins across leading crypto exchanges.

CZ Writes To Binance Staff

Earlier, Binance CEO CZ penned a note to his employees on the current situation around FTX and the potential acquisition. He indicated that the FTX meltdown should not be considered as a win for Binance. CZ said the FTX scenario could be a bad thing for the entire crypto ecosystem as it could attract more regulatory scutiny. It would be harder to get crypto licenses approved across the world after the FTX situation, he said in his message to employees.