It’s official. Binance will not be purchasing FTX. “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 FTX.com,” Binance tweeted.
Binance, the world’s largest crypto exchange, has backed out of its agreement to purchase FTX just one day after signing an agreement to rescue the company on Tuesday. Binance said its decision was made in light of a review of FTX’s handling of customer deposits, alongside alleged US agency investigations against the firm.
“Every time a major player in an industry fails, retail consumers will suffer,” Binance continued. “We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.”
Binance CEO Changpeng Zhao (CZ) confirmed afterward that Binance had signed a non-binding agreement to purchase FTX and help it navigate its liquidity crunch. However, he clarified from the start that Binance reserved the right to withdraw from the agreement at any time.
CZ denied that he orchestrated the downfall of FTX in any way, calling it “not good for anyone in the industry.”