Binance has finally said it will not pursue its purchase of the FTX platform, citing “out-of-control issues” and “mismanaged customer funds”. Thus, the most complete fog is settling over the cryptocurrency market, which has already been in deep trouble for a few days.
Binance won’t save FTX
Binance will not be able to save FTX after all. Read our real time follow-up of the FTX affair and all the consequences.
After 48 hours of interminable waiting, which will have, despite the uncertainty, managed to bring down the entire cryptocurrency market following massive withdrawals from various users on their trading platforms, Binance has issued a statement indicating that after conducting its due diligence process, the deal will not be pursued:
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f
– Binance (@binance) November 9, 2022
“Following our due diligence study, as well as the latest information regarding mismanaged client funds and alleged investigations by U.S. agencies, we have decided not to pursue the potential acquisition of FTX.com. “
As a result, those unlucky enough to be unable to withdraw their funds from the troubled exchange may have seen one of their last hopes disappear here. According to some reports, FTX is currently in a multi-billion dollar deficit.
Here’s the rest of Binance’s statement, explaining what prompted its decision:
“Initially, our hope was to be able to support FTX customers to provide liquidity, but the problems are beyond our control or ability to help. Whenever a major player in an industry goes under, consumers suffer. We have seen over the past few years that the crypto ecosystem is becoming more resilient and we believe that over time, outliers that misuse user funds will be eliminated by the free market. As regulatory frameworks are developed and the industry continues to evolve towards greater decentralisation, the ecosystem will become stronger. “
The price of FTT, which had already fallen by 80% in 24 hours, literally collapsed following Binance’s announcement. It is currently trading at around $1.8, down from $25 a week ago.
