Leading cryptocurrency exchange Binanceannounced that it was withdrawing from the FTX deal after reviewing the company’s financing. After the purchase in question caused great damage in the crypto money market, it decided to stop this purchase.
Koinfinans.com As we previously reported, Binance announced on Tuesday that it will acquire FTX. Details of this purchase were not shared, but a ‘letter of intent’ was signed for the preliminary agreement.
Binance revealed some details in its new tweet series it shared. The company canceled the purchase of FTX after ‘misused client funds’ and ‘alleged US investigations’ as a result of corporate investigations.
“Every time a major player in an industry fails, retail consumers will suffer,” Binance shared.
“We’ve seen the ecosystem become more resilient over the past few years. We believe that players who abuse users’ funds will be removed from the market over time.”
CoinDesk stated that FTX’s loan commitments have raised concerns among Binance officials.
In another tweet shared by Binance: “Initially our hope was to support FTX customers with liquidity. But the issues are beyond our control and beyond what we can help.”
Binance founder and CEO Changpeng Zhao (CZ) announced that FTX had requested assistance.
This statement from the Binance front was not received positively by the crypto money market. The news of the cancellation of the purchase started a decline in prices again.
Bitcoin slumped to $15,800, its lowest level since November 2020. Ethereum is trading at $1,166. The global crypto market cap has dropped below $1 trillion.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.