Binance Backs Out of FTX Purchase

Binance Backs Out of FTX Purchase

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Jonathan
Jonathan

An editor at Coincrop


10 Nov 2022 | 2 min read
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T

he Wall Street Journal reported that Binance will not go through with its planned takeover of FTX after reviewing the cryptocurrency exchange's internal data and loan commitments. As earlier confirmed by CoinDesk's reports, Binance is unlikely to follow through with the deal.

The Binance crypto exchange told the Wall Street Journal that..."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".

On Tuesday, Binance signed a nonbinding letter of intent to buy FTX's non-U.S. operations in order to provide relief for FTX's liquidity issues. Cryptocurrency prices then experienced a sharp decline due to the market concerns surrounding FTX's financial stability and potential insolvency.

More than $1.2 billion was withdrawn from the FTX exchange on Monday, as users rushed to pull their funds out. This caused Bitcoin prices to drop below $16,000 for the first time in two years, and other cryptocurrencies followed suit with similar tumbles in value.


Jonathan

Jonathan

An editor at Coincrop
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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.


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