Cryptocurrency exchange Binance has withdrawn its bailout offer for FTX, leaving the second-largest cryptocurrency exchange with an unknown outcome. Following an assessment of the company’s finances, Binance decided not to proceed with the acquisition, according to the exchange.
“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said.
FTX bowed to an unexpected liquidity crisis on Tuesday and agreed to be acquired by rival Binance, months after appearing to be a shining survivor in a faltering industry. FTX CEO Sam Bankman-Fried was an aggressive lobbyist and largely regarded as the face of cryptocurrency. He just contributed over a billion dollars to help failing lenders.
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
The rapid decline of FTX has stunned cryptocurrency firms that traded with it, as well as users who believed that the crypto exchange meeting authorities in Washington, D.C., and placing its name on a Miami arena would provide some safety for their assets.
The cancellation of Binance’s agreement raises concerns about what will happen to investors who entrusted their monies to FTX. This year, several cryptocurrency companies have filed for bankruptcy, leaving individual investors waiting in line to recoup their monies.
According to a pinned message in the exchange’s official Telegram channel, FTX has blocked both crypto and fiat withdrawals.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
