Sources say Binance could scrap the deal with FTX Sources say Binance could scrap the deal with FTX
A source close to the matter revealed that it was highly unlikely Binance will acquire FTX after looking at the company's books.
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Updated: Oct. 10, 2023 at 10:09 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance’s market-altering deal to acquire rival FTX might not go through, sources close to the matter told CoinDesk.
On Tuesday, Binance announced a non-binding letter of intent to take over FTX but noted that it needed to perform due diligence on the struggling exchange. Less than a day into the process, Binance is strongly leaning against going through with the deal, the person revealed.
Binance is reportedly reviewing the exchange’s internal data and loan commitments and is yet to decide on whether to complete the acquisition.
However, neither Binance nor FTX have commented on the issue. If Binance scraps the deal, FTX could find itself in a crunch — its native token FTT lost almost 80% of its value in the past several days, its reserves are depleted, withdrawals from Ethereum halted, and user deposits aren’t eligible for any type of insurance.
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
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.
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.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.