Binance scraps plans for FTX rescue buyout

Just one day after announcing that it was considering buying cryptocurrency platform to help it out of serious difficulties, Binance said on Wednesday that it was abandoning the deal.

After conducting an audit of FTX’s operations, “we have decided that we will not pursue the potential acquisition of FTX,” the cryptocurrency exchange said in a tweet. It said its decision was taken after “news reports regarding mishandled customer funds” and alleged investigations by US agencies.

“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,” Binance, the world’s largest virtual currency platform, said.

The future of is now uncertain. The platform was until recently considered a solid player in the sector. Its founder, Sam Bankman-Fried, is a major name in the world of cryptocurrencies, and FTX was valued at $32 billion when it last raised funds in January.

However, doubts recently emerged about its accounts and its relationship with cryptocurrency investment fund Alameda, also founded by Sam Bankman-Fried.

Binance boss Changpeng Zhao, claiming FTX had asked him for help due to a significant liquidity crisis, signed a letter of intent on Tuesday to buy, which did not include the US arm However, he had also said he would conduct an audit – a standard procedure for such deals – for a few days before confirming its intention.

Whenever a major player in an industry goes bankrupt, consumers suffer, Binance said on Wednesday.

The author: Michel DEURINCK

Michel Deurinck, born in Brussels in 1950, started his career in the Belgian civil service, dedicating over 30 years to public service. Upon retirement, he pursued his passion for journalism. Transitioning into this new field, he quickly gained recognition for his insightful reporting on politics and culture. Deurinck's balanced and thoughtful approach to journalism has made him a respected figure in Belgian media.

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