Binance is now backtracking on the proposal they had made yesterday to save FTX from financial ruin in a white knight move to save the company.
A spokesperson for the company came out and clear the air as to what is currently happening with Binance and the deal.
“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” the spokesperson told CoinDesk.
“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,” the spokesperson added.
FTT, which had already plunged in recent days, was down another 32% to about $2.41 after the news of Binance pulling out of its deal to buy FTX came out.
Let’s see how the story develops for FTX who has been in a downward spiral over the last few days. It’s probably going to get a lot worse for the company.
