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Crypto: Binance confirms it’s backing out of deal to buy FTX assets

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Binance, the world’s largest crypto exchange, has confirmed that it is indeed backing out of its deal to buy rival FTX’s non-U.S. assets, according to a tweet sent from the company’s verified Twitter Inc. account.

The tweet, sent at 4 p.m. New York time just as the U.S. stock market was closing, confirmed earlier reports cited by MarketWatch that the firm was likely planning to walk away from the deal after performing some initial due diligence.

Binance said it had hoped to “support FTX’s customers to provide liquidity” but that the issues it discovered were “beyond our control or ability to help.”

The exchange cited findings unearthed by its due diligence, as well as reports of a federal investigation and allegations that the firm mishandled customer funds, for to influencing its decision to walk away from the deal, the company said via Twitter.

They added that every time “A major player in the industry” fails, it’s ultimately users and customers who are negatively impacted.

But as regulatory frameworks continue to develop and the industry moves”toward greater decentralization,” the crypto ecosystem “will grow stronger,” the firm said.

Prior to Tuesday’s deal announcement, FTX had seized the opportunity earlier this year to buy up other struggling crypto firms, earning it comparisons to JPMorgan Chase & Co., which bought failing investment bank Bear Stearns during the depths of the financial crisis.

Bitcoin
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prices added to their steep losses over the last 24 hours after the tweets landed. The digital currency has fallen nearly 12% in that time, trading at $16,132 in recent trade, falling to new lows in the wake of Binance’s tweets.

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