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Crypto • Fintech & e-commerce

Binance-FTX Deal A No-Go

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Just as fast as the deal for acquiring FTX.com — the non-U.S. exchange associated with — was made, it appears to have disappeared.

Early Wednesday, it was Binance was likely to walk away from the deal and then by the afternoon a Binance spokesperson told the company will not pursue an acquisition of FTX.

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“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,� the spokesperson told the news service.

It’s unclear where this may leave FTX, the fourth largest crypto exchange by volume. 

During the weekend, Binance CEO Binance — the largest exchange by volume — would sell its holdings of FTX’s native token, FTT.

“Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books,� he said.

On Monday, FTT witnessed a major sell-off amid concerns about the solvency of FTX and Bankman-Fried’s other trading firm after the push by Binance. Earlier this month, came out that Alameda had a large portion of FTT on its balance sheet, possibly helping prop up its value. Alameda has disputed that claim.

FTT prices dropped like a rock amid the controversy, and concerns were further fanned when users reported slow withdrawals on FTX’s platform. Bankman-Fried has since said the company is working to clean out a backlog.

Some of those fears seemed to be relieved Tuesday when Zhao his company would acquire FTX. 

“There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire and help cover the liquidity crunch,� he tweeted.

FTX’s collapse is stunning when considering earlier this year it raised $400 million at a valuation. According to ÍÃ×ÓÏÈÉú´«Ã½, FTX has raised nearly $2 billion. Investors in FTX include the , Singapore’s and .

Zhao and Binance also were early investors in FTX.

has estimated Bankman-Fried’s net worth to be $17 billion.

±õ±ô±ô³Ü²õ³Ù°ù²¹³Ù¾±´Ç²Ô:ÌýDom Guzman

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