Following its shocking announcement to acquire FTX which is on the verge of collapse, Binance is walking away from the deal.
Binance Founder and CEO Changpeng Zhao, the Chinese-Canadian billionaire who is the largest crypto exchange, posted to Twitter, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”
Its initial plans to rescue FTX, the second biggest exchange, surprised many in the crypto world.
Now that Binance is backing out, reports are that FTX may be filing for bankruptcy. A person privy to the situation said FTX was short $US 8 billion, as it attempts to rescue the company through the financing of debt and/or equity.
The crypto stock market is now plummeting with Bitcoin tumbling to the lowest levels in two years, as Binance walked away from FTX.com.
It was also reported that FTX CEO Sam Bankman-Fried who was worth about $15.2 billion lost $14.6 billion of his personal money, overnight.
Bankman-Fried moved from Hong Kong to set up his headquarters in the Bahamas this year, boasting that “The Bahamas is one of the few places to set up a comprehensive framework for Crypto.”