JUST IN: Binance no longer interested in FTX acquisition; withdraws intentions


According to a spokeswoman for Binance, the company has canceled its letter of intent to acquire competing cryptocurrency exchange FTX.

The spokesperson said, “We have concluded that we will not pursue the potential acquisition of FTX.com as a consequence of corporate due diligence, as well as the newest news stories alleging mismanaged client monies and suspected U.S. agency investigations.”

“At first, we hoped to be able to help FTX’s clients by offering liquidity, but the problems are beyond our control or capacity to assist.”

Retail customers will suffer every time a key company in an industry falters. The crypto ecosystem has grown more resilient over the past few years, and we anticipate that outliers who misuse user funds will eventually lose credibility.

“At first, we hoped to be able to help FTX’s clients by offering liquidity, but the problems are beyond our control or capacity to assist. Retail customers will suffer every time a key company in an industry falters. “As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger,” the spokesperson added.

“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.”

The world’s largest cryptocurrency exchange by volume, Binance, agreed to help out its struggling rival in the face of a liquidity crisis that was partially brought on by Binance’s announcement that it would sell off all of its holdings of FTX’s exchange token FTT. Binance’s withdrawal of its offer put an end to a fast-paced day and a half. FTX’s sibling company, trading company Alameda Research, has a large portion of its balance sheet assets in FTT, according to a previous article by CoinDesk.

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Following the disclosure that Binance had withdrawn from its agreement to purchase FTX, FTT, which had already fallen precipitously in recent days, fell another 32% to roughly $2.41.


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