In a recent development, Binance has publicly confirmed that it would no longer pursue the FTX takeover. This follows the Binance team’s due diligence on the internal operations of the debt-ridden FTX exchange, as well as allegations of user money mishandling and purported investigations by US authorities.
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
Experts claimed earlier today that FTX’s bad financial records sparked worries among Binance’s senior executives, who may ultimately pull out of the agreement.
Binance issued a letter of intent on Tuesday to purchase its struggling competitor, FTX, in what seemed to be a possible rescue of the latter due to a financial restriction. That strategy, however, collapsed a little more than 24 hours later.
Impact on Crypto Market
The announcement that Binance would not acquire FTX fueled more falls when US equity markets closed on Wednesday. According to TradingView statistics, Bitcoin went as low as $16,027. At 4:20 p.m. ET, bitcoin was worth $16,120.
Chart by Tradingview
Solana was trading at $12.82 as of 4:20 p.m. ET, a drop of more than 45% from the last day.
Chart by Tradingview
Other significant crypto assets, like BNB and DOGE, have declined dramatically over the last day, as per CoinGecko statistics.
