According to a person close to the subject who spoke to Coindesk, cryptocurrency It seems unlikely that exchange giant Binance will implement its proposal to buy its embattled competitor FTX after less than a day of reviewing the company.
The non-binding letter of commitment for the takeover, which Binance announced on Tuesday, when FTX’s finances began to spiral out of control, depended on Binance’s due diligence.
By Examining FTX’s Internal Data, Binance Moved Away From Acquiring The Company According To Sources
The person in question said that about half a day of FTX’s internal data and loan commitments review process led to a strong tendency for Binance not to complete the transaction.
Binance declined to comment on the current status of the proposed deal.
Such a move by Binance could create a new shock wave in the course of recent events that have lasted for about a week.
CoinDesk published a report a week ago about the balance sheet of Alameda Research, the institutional sibling of FTX. The story raised concerns about the financial stability of Sam Bankman-Fried’s crypto empire, which includes both companies, and caused a liquidity crunch at FTX.
This is the case with Binance CEO Changpeng Zhao, released by FTX on Sunday. FTT worsened when he said he would sell his cryptocurrency holdings.
According to people familiar with the matter, the company accepted the deal after FTX sought help from other major exchanges Coinbase and OKX and was turned down by them.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!