Crypto exchange Binance pulls out of acquisition for rival FTX

The crypto exchange Binance has pulled out of a deal to acquire rival digital currency company FTX just 24 hours after it announced the tentative agreement,

The crypto exchange Binance has pulled out of a deal to acquire rival digital currency company FTX just 24 hours after it announced the tentative agreement, the company said in a statement Wednesday on Twitter. 

The company tweeted that the deal fell through during the corporate due diligence process following a report that federal investigators were looking into FTX.com’s handling of customer funds.

The about-face is yet another major market disruptor in an increasingly volatile industry. The deal would have combined two of the world’s largest crypto platforms amid concerns about the financial viability of many companies whose digital assets have dropped significantly in value in recent months

“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,” Binance said.

The reversal immediately puts the future of FTX, once one of the crypto industry's most popular and valuable companies, in doubt. CNBC reported that the company was privately valued earlier this year at $32 billion and may now be on the verge of insolvency.

https://www.nbcnews.com/tech/crypto/crypto-exchange-binance-pulls-acquisition-rival-ftx-rcna56499


Post ID: 0c65c949-8a70-407d-8913-e90879f5d3ea
Rating: 5
Updated: 1 year ago
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