Binance backs out of FTX rescue, leaving the crypto exchange on the brink of collapse

Binance is backing out of its plans to acquire FTX, the company said Wednesday.

The reversal comes one day after Zhao announced that Binance, the world’s largest cryptocurrency firm, had reached a non-binding deal with Sam Bankman-Fried’s FTX to buy the exchange’s non-U.S. businesses for an undisclosed amount, rescuing the company from a liquidity crisis. Earlier this year, FTX was valued at $32 billion by private investors.

Here’s the company’s full statement:

“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.

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.

Every time a major player in an industry fails, retail consumers will suffer. 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.

As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.”

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