Binance says it gave up on buying FTX after risk analysis

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Cryptocurrency exchange Binance announced on Wednesday (9) that it has decided not to proceed with an agreement to buy its rival FTX, after carrying out a corporate risk analysis on the operation. The company also cites news about mismanaged funds and alleged US investigations into FTX.

Binance signed a non-binding deal on Tuesday to buy the non-U.S. unit of FTX to help cover a “liquidity crunch” on the rival exchange, but the deal was subject to further review.

“As a result of the due diligence [análise de risco] As well as the latest news about mismanaged client funds and alleged US agency investigations, we have decided that we will not proceed with the potential acquisition of FTX.com.”

Binance says it expected to support FTX customers, but the issues are beyond its control or ability to help.

An FTX representative did not immediately respond to a request for comment, but CEO Sam Bankman-Fried told employees, in a Slack message seen by Reuters, that Binance had not previously expressed reservations about the deal.

The turmoil over FTX has hit cryptocurrency prices. Bitcoin, the biggest cryptocurrency by market cap, is down 13% on the day to $16,277.

FTX is also facing U.S. regulators over its handling of customer funds and its cryptocurrency lending activities.

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