Crypto exchange Binance drops FTX acquisition

Asian Tech Press (Nov 10) -- Binance, one of the world's largest cryptocurrency exchanges, has given up on acquiring its major rival FTX.

Binance tweeted Wednesday, "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"

The decision came a day after Binance CEO Changpeng Zhao announced that it had reached a non-binding agreement with FTX to acquire its non-U.S. operations, thereby rescuing the latter from a significant liquidity crunch."

"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," explained Binance.

FTX appears to have lost a life saver after Binance dropped its rescue. FTX CEO Samuel Bankman-Fried told investors that FTX had an $8 billion shortfall following the liquidity crunch, and that the platform would need to file for bankruptcy without a cash injection, according to multiple media reports.

In addition, sources said that U.S. regulators, including the SEC, CFTC, DOJ, are investigating FTX over its liquidity crunch and possible fraud.

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