After signing a non-binding agreement to buy FTX yesterday, reports show that the Binance network has walked out of the deal. Reports show that a Binance exchange representative issued a public statement noting that FTXâs problems are too huge for Binance to help. Â
Binance cites ciscoveries made during due diligenceÂ
The statement said in part;Â
âOur hope was to be able to support FTXâs customers to provide liquidity, but the issues are beyond our control or ability to help.âÂ
WSJ reported that the potential of Binance doing any deal with FTX is completely off.
Binanceâs decision to walk out of the deal was triggered by the discoveries made when conducting due diligence on FTX. Moreover, the Binance statement highlighted that âthe latest news reports regarding mishandled customer funds and alleged US agency investigationsâ also fueled their decision to leave the deal. Even before today, there were serious concerns about the financial health of the FTX network.Â
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.
â Binance (@binance) November 9, 2022
The regulatory troubles likely to face the exchange and its CEO, Sam Bankman Fried, are also among the factors considered when making this decision. The Binance spokesperson said;Â
âAs regulatory frameworks are developed, and the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.â Â
Earlier today, Brian Armstrong, the CEO of Coinbase, commented on the FTX situation, especially about the planned exchange purchase by Binance. Mr. Armstrong highlighted that even with Binanceâs support, Sam Bankman-Friedâs credibility would remain ruined.