Binance walks away from FTX deal, citing ‘mishandled customer funds,’ regulatory scrutiny Binance walks away from FTX deal, citing ‘mishandled customer funds,’ regulatory scrutiny
Binance said FTX situation were beyond its control and ability to help.
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Updated: Oct. 9, 2023 at 6:56 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance has announced that it will not pursue its option to purchase FTX because of its due diligence and reports that a US agency was investigating the exchange over its handling of customersโ funds.
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 https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
Binance stated FTX issues were beyond its control and ability to help.
The Changpeng Zhao-led exchange continued that the crypto ecosystem will grow stronger as more “regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization.”
FTX had suspended withdrawals for customers after reports had revealed the shaky state of its reserves.
Following the news, CryptoSlate data shows that FTT tanked to $2.1, while Bitcoin (BTC) dropped to $15,800.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX Token
$2.08823
FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.