Binance Drops Plans to Acquire Finetech Startup FTX

FTX Effects Continues, Even After the Fall of BlockFi!
  • Binance decided against purchasing FTX.
  • FTX and Alameda are being investigated by the SEC and the CFTC for mishandling customer funds.

Binance, the top cryptocurrency exchange in the world, declared on Wednesday that it will not proceed with the acquisition of FTX. 

CZ added :

 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.

More Losses for FTX

FTX’s US subsidiaries, FTX.us and Alameda Research, are being investigated by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for mishandling customer funds. CZ revealed on Tuesday that the company has reached a non-binding deal with FTX after meeting with its founder, Sam Bankman-Fried. After internal balance sheets were released, reports about the liquidity of SBF’s crypto empire have been spreading for days.

Then, CZ declared that it was selling all of its holdings of FTX’s crypto token, FTT. As word spread, FTX experienced $6 billion in client withdrawals in 72 hours. Before pulling out of the deal, CZ posted a memo to Binance staff addressing how the company had not accounted for the collapse of its competitor and how FTX’s failure is not beneficial for the crypto sector as a whole. FTX was in discussions to raise $1 billion at a $32 billion value merely six weeks ago.

Journalism graduate who loves to write and Karate. And I love exploring new concepts and that brought me into the fascinating crypto and blockchain technology…