Binance is backing out of its original plans to acquire FTX, the company said Wednesday, after talks that’s been going on for a few days.
The reversal comes one day after Zhao announced that Binance, the world’s largest cryptocurrency firm, had reached a non-binding deal with Sam Bankman-Fried’s FTX to buy the exchange’s non-U.S. businesses for an undisclosed amount, rescuing the company from a liquidity crisis. Earlier this year, FTX was valued at $32 billion by private investors.
The details of the meeting, or even the talks that has taken place are not available as of yet, but according to the company’s announcement: “
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.com.
In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.
Every time a major player in an industry fails, retail consumers will suffer. 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.
As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.”
After everything that’s been going on, the investors were most likely anticipating that Binance will swoop in to save their rivals and save the market from further bleeding.
In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5
— CZ 🔶 Binance (@cz_binance) November 9, 2022
But as it turns out, none of that is going to happen, and how will the markets react to this particular news
Stay on the lookout l, things are about to get heavy. And as always stay in touch with us for the latest news.
Nice
Nice one