In an accelerated turn of events, Binance said in a statement that it will no longer continue buying FTX.

Why Binance dropped the idea of ​​acquiring FTX:

Binance’s decision follows due diligence by the Binance team regarding the internal workings of the debt-laden FTX exchange, news reports of misappropriation of user funds, and alleged investigations by US authorities.

As a result of corporate due diligence, as well as recent news reports about mismanaged customer funds and US agency investigations, we have decided not to proceed with a potential acquisition. https://t.co/FQ3MIG381f.

— Binance (@Binance) November 9, 2022

Binance’s official account on Twitter stated the following:

Every time a major player in an industry fails, retail customers suffer.

We have seen the cryptocurrency ecosystem become more resilient over the past several years, and we believe that over time outsiders who misappropriate user funds will be eliminated through the open market.

FTX’s poor financial records were among the main reasons why Binance backed away from the idea of ​​acquiring FTX.

Binance signed a letter of intent on Tuesday to acquire struggling rival FTX, in what appeared to be a possible rescue for the platform given liquidity constraints.

But the plan failed after just 24 hours.

Affected by the news and uncertainty surrounding user funding, the price of the digital currency FTT has fallen to $2.6 at the time of writing.

Also read:

Cryptocurrency market cap drops below $900 billion for first time since January 2021

OFFICIAL: Cryptocurrency exchange BitMEX announces launch date for trading of its digital currency BMEX