In a recent development, Binance made it known that they will no longer be pursuing the FTX purchase.
This follows the Binance team's research into the inner workings of the indebted FTX exchange, news claims of user cash being mismanaged, and purported investigations by the US authorities.
In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.
— Binance (@binance) November 9, 2022
Binance's official Twitter account added the following:
“Every time a major player in an industry fails, retail consumers will suffer. 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.”
It was earlier today reported that Binance's top executives were concerned about FTX's poor financial performance and that they may eventually withdraw from the arrangement.
Under pressure to increase liquidity, Binance on Tuesday signed a letter of intent to buy its struggling rival, FTX, in what appeared to be a potential rescue plan for the embattled exchange. A little more than 24 hours later, though, that strategy was unsuccessful.
FTT, the native token of FTX, has fallen precipitously in response to the announcement and the uncertainty surrounding user funds, reaching a low of $1.53 as of this writing.
