Binance has done what some had expected – the they have said it would walk away from a deal with the third largest crypto exchange by volume, FTX, only a day after signing a letter of intent to purchase their competitor.
Binance backed out after reviewing the company’s structure and books, according to a statement issued to the Wall Street Journal.
“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 said.
“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of [FTX],” Binance said on Twitter.
“Every time a major player in an industry fails, retail consumers will suffer,” Binance stated. “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.”
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