Binance Withdraws From the Acquisition of Rival FTX

Binance Withdraws From the Acquisition of Rival FTX

The world’s largest cryptocurrency exchange, Binance, has decided to pull out of the acquisition of the rival crypto exchange FTX. The company has announced that after due diligence and "news reports regarding mishandled customer funds," Binance has decided not to pursue the FTX acquisition.

Binance Backs out of FTX Deal

After the crypto exchange Binance revealed it would purchase FTX, the exchange announced it had backed out of the proposed deal.

"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 [FTX]," Binance said on Twitter.

Binance then tweeted that it wanted to help FTX’s customers, but "the issues are beyond our control or ability to help." The exchange further remarked that every time a major crypto business fails, retail investors suffer. "We have seen over the last several years that the crypto ecosystem is becoming more resilient, and we believe that, in time, outliers that misuse user funds will be weeded out by the free market," Binance added.

The exchange concluded by adding that the ecosystem will benefit from stronger "regulatory frameworks" and "greater decentralization." Crypto asset values dropped on the news, and the entire crypto-economy is close to dropping below USD 800 billion after dropping 10.56% during the last 24 hours.