Home » Binance may cancel its purchase of FTX after seeing the state of its accounts

Binance may cancel its purchase of FTX after seeing the state of its accounts

by Thomas

According to a source close to the matter, Binance’s acquisition of FTX may finally be cancelled altogether. Indeed, following the study of the platform’s accounts in relation to the due diligence process, Binance is said to be leaning against a takeover of FTX. Both entities have refused to communicate on this subject

What if Binance cancels FTX buyout?

Here’s a decision that could have irreversible consequences for the ecosystem: according to a source quoted by CoinDesk, Binance may finally cancel its acquisition of FTX.

“The exchange is very unlikely to go through with the acquisition,” said the source close to the potential acquisition.

According to reports, Binance may finally decide to cancel the deal following its review of FTX’s accounts as part of its due diligence process. Indeed, this legal process allows an entity to study the state of a company’s accounts before a potential takeover.

According to the same source, after a half-day review of the accounts, Binance was very unfavourable to a takeover of FTX.

The price of Bitcoin (BTC) fell by 5% after the publication of this probable cancellation. The FTT, the token of the FTX platform, seems to have “stabilised” around 4 dollars after a sharp fall from 20 dollars. It has lost 80% of its value in the last 24 hours.

Bitcoin price

Bitcoin price


A decision that would be understandable, given that Binance’s review of the accounts echoes CoinDesk’s November 2 report of a potential insolvency of Alameda Research.

According to the report, Alameda Research held more than $10 billion in various cryptocurrencies, including FTT or the Solana blockchain SOL (an ecosystem in which FTX has invested heavily).

Beyond the purely financial aspect of the matter, the legal perspective could also be one of the causes of a potential cancellation of the acquisition, the finality of which will have considerable repercussions whatever they may be.

Indeed, whether it is with regard to US antitrust law or competition law, the absorption of FTX by Binance is far from trivial: the 2 giants alone hold more than 80% of the cryptocurrency market.

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