Binance has finally declared that it will not pursue its purchase of the FTX platform, citing “out of control issues” and “mismanaged client funds”. Thus, the most total fog settles on the cryptocurrency market, the latter having already been in great difficulty for a few days.
Binance will not save FTX
The ax will eventually fall: Binance won’t be able to save FTX after all.
After 48 hours of interminable waiting, which will have, despite the uncertainty, succeeded in bringing down the entire cryptocurrency market following massive withdrawals from the various users on their trading platforms, Binance published a press release indicating that after completing its process of due diligence, the agreement will not be continued :
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
“Following our due diligence study, as well as the latest information regarding mismanaged client funds and alleged US agency investigations, we have decided not to pursue the potential acquisition of FTX.com. »
Therefore, people who had the misfortune of not being able to withdraw their funds from the exchange in great difficulty could see here one of their last hopes disappearing. According to some statements, FTX is currently in deficit to the tune of billions of dollars..
Here is the rest of Binance’s press release, explaining what prompted its decision:
“Initially, our hope was to be able to support FTX customers to provide them with liquidity, but the issues are beyond our control or our ability to help. Every time a major player in an industry goes bankrupt, consumers suffer. We have seen over the past few years that the crypto ecosystem is becoming more resilient and we believe that over time, aberrations that misuse user funds will be weeded out by the free market. As regulatory frameworks are developed and the sector continues to move towards greater decentralization, the ecosystem will strengthen. »
The price of FTT, which had already fallen by 80% in 24 hours, literally collapsed following Binance’s announcement. The latter is currently trading around 1.8 dollarscompared to 25 dollars a week ago.
👉 Find our article to understand everything about the collapse of FTX
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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