News

Binance Canceled The FTX Acquisition Agreement

Cryptocurrency exchange Binance has withdrawn its offer to buy FTX after deeming it to be out of control.

Due to a liquidity crisis brought on by the demise of its native exchange token FTT, FTX agreed yesterday to sell its non-U.S. assets to the competing exchange.

However, subsequent reports have questioned the likelihood, citing unbridgeable financial gaps in FTX’s accounts as the reason.

After the due diligence process, plus the information that FTX misused customer funds and was investigated by the US, Binance decided to withdraw its offer to buy FTX.

Soon after, Binance CEO Changpeng Zhao (CZ) also spoke up and said he had tried his best, expressing his “sadness.”

As Coincu reported, both exchanges came to an acquisition agreement on November 8, CZ called the deal a non-binding letter of intent leaves, subject to due diligence.

Around $6 billion in net withdrawals had also occurred from FTX in the days prior to Tuesday morning. At the same time, billionaire Sam Bankman-Fried‘s fortune has dropped significantly.

Currently, FTX’s native token, FTT, has dropped to just $2.78 at press time.

FTT daily chart. Source: Coincu

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.