Binance Walks Out of FTX Deal

Binance will not be buying the deeply indebted crypto exchange FTX, the company reportedly said in a statement.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customers funds and alleged US agency investigations, we have decided we will not pursue the potential acquisition of FTX,” Binance said.

That’s just a day after the industry was stunned by Binance announcing intent to acquire FTX, with FTX’s withdrawals stopping around the same time.

Just how big of a problem had developed at FTX became apparent hours after with rumors circulating there was a hole of $6 billion.

Binance’s reserve funds for if things go wrong is just $1 billion, with it becoming somewhat clear after that hole was established that the deal was probably not going to go through in an acquisition form.

There was more speculation on whether retail will be distributed whatever assets are left, instead of going through the decade long legal system, but the quick megaphoning of regulatory agencies has seemingly scared out crypto actors who are washing their hands of any involvement with this exchange.

The spotlight then goes back to Sam Bankman Fried who presumably now has to file for bankruptcy with the first stage of this episode so coming to an end.