Binance backs out of FTX Acquisition

Binance has revealed it’ll no longer move forward with plans to acquire cryptocurrency exchange FTX. Binance has earlier hinted its intention to buy FTX to help solve the possible liquidity crunch the exchange was faced with. Binance CEO in a tweet announced the company will acquire FTX but this would only be possible once it was done with its due diligence to know the current state of the exchange. 

As an outcome of this due diligence, Binance has finally decided not to proceed with the acquisition of FTX. This was made known via a tweet from the exchange’s official Twitter account. The tweet explained that this decision was influenced by the reports gathered “regarding mishandled customer funds and alleged US agency investigations.”

Explaining its initial intention, the exchange’s plan was to 

support FTX’s customers to provide liquidity. However, “the issues are beyond our control or ability to help.” 

Addressing the public, Binance explained that “every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.” 

In the concluding statement of the thread, the leading exchange said there is a glimpse of hope for the crypto space as “regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.” 

This decision of Binance will in a way spell doom for the already perplexed customers who are unable to withdraw their funds from the exchange. 

Read Also:

FTX vs. Binance: how the war started

Binance to Acquire FTX 

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