Binance abandons acquisition of FTX

Binance made it known that abandoned the redemption of the sick bag FTX. Sam Bankman Fried is looking for a new solution. The founder of Tron indicates in turn that he wants to save the platform.

Wednesday evening, Binance has finally announced that it is leaving the purchase from FTX.

Following due diligence of the company, as well as recent reports of mismanagement of customer funds and alleged investigations by U.S. agencies, we have decided not to pursue the potential acquisition of FTX.com.” wrote Binance on Twitter.

Binance said Tuesday that it had signed a non-binding letter of intent to make theacquisition of the platform founded by Sam Bankman Fried and currently affected by a liquidity crisis.

“Initially, we had hoped to help FTX’s customers provide liquidity, but the problems are beyond our control or our ability to help.. Whenever a major player in an industry fails, retail consumers are harmed,” Binance said.

source

At the same time, Sam Bankman Fried reportedly told FTX shareholders that the platform needed to. €4 billion to remain solvent., reported Bloombergciting a source close to the matter. SBF is reportedly actively seeking to raise capital.

Controversial crypto-entrepreneur and founder of blockchain Tron, Justin SunJustin Sun, meanwhile, announced that he would support TRX token holders in FTX. “The TRX trading on FTX has resumed.. We are working on the withdrawal. Stay tuned.” he said. this morning, saying it was a ” first step “This is the first step towards a solution that will allow all FTX users to “get back to normal”.

Impact of the exchange routine on FTX customerswho no longer have access to its assets, but also to the company’s shareholders and partners. On its web page, FTX states that the registrations, deposits and withdrawals are suspended “until further notice”.. In addition, holders of the cryptocurrency exchange’s native token, FTTare suffering heavy losses. The price of tokens has dropped less than 3 dollars versus more than $20 last week.

The FTX mishaps and contagion risks, commonplace in the cryptocurrency ecosystem, have also exacerbated theconcern of digital wallets. In recent days, Bitcoin has lost more than 15% of its value and has fallen to a new low. At the time of publishing this post, the price of the queen of cryptocurrencies is trading around $16,700, down 9% in 24 hours.

According to the Wall Street JournalU.S. authorities opened a survey at FTX following problems encountered by the platform.

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