Last night, Binance announced that they did not continue with the purchase process of the FXT crypto exchange. Binance tweeted that “as a result of the corporate due diligence review, and recent news reports regarding the mishandling of customer funds, as well as alleged investigations by regulators, we have decided not to proceed with the potential acquisition of FTX.com.”
The tweet also reads: “Initially, we hoped to be able to support FTX customers and provide liquidity, but it turns out that this is beyond our ability to help. Every time a major player in the industry goes down, customers are hurt. We have seen this for several years. But as regulation develops, and so does decentralization, the system will be stronger”.
Last night’s announcement comes after in recent days the crypto exchange Binance signed a non-binding purchase agreement with competitor FTX, after the latter ran into difficulties following a publication by CoinDesk last week, which raised concerns that the balance sheet of Alameda Research, a sister company of FTX, was too dependent on illiquid currencies. Including the FTT coin of FTX itself.
Binance’s announcement, which arrived yesterday at night, was preceded by news that the regulators in the United States will open an investigation into the conduct of FTX in the fields of funds, loans, and connections with sister company Almeda.
The ripples in the crypto world are now centered on the SOL coin of the Solana project, one of the biggest projects in the crypto world. FTX and Almeda had considerable holdings in the project, and its sale was used in the early stages of the crisis to obtain liquidity for FTX. The currency lost half of its value in the last five days.