Binance Backs Out of FTX Acquisition – FTT Price Slips Toward $2

    Just a day after making the deal, leading cryptocurrency exchange Binance canceled its offer to rescue FTX.

    Binance cancels the FTX acquisition  

    Binance said its decision was made after reviewing FTX’s handling of customer deposits, along with the emergence of investigations from the US agency against the company.

    The announcement, which came out on Wednesday, stated that FTX’s financial distress is beyond help – even from Binance.

    “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.”

    Binance also noted that retail customers suffer “every time a major player in an industry fails, retail consumers will suffer.” However, it claimed that the bad players who abuse customer funds will eventually be eliminated by the “free market”.

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

    Meanwhile, Binance CEO Changpeng Zhao said on Wednesday that he “did not master plan” the collapse of rival crypto exchange FTX, asserting “going down is not good for anyone in the industry.”

    Brian Armstrong, Coinbase CEO, made a similar comment on Tuesday, believing that clearer U.S. regulation will help protect customers from seeking less protected offshore exchanges in the future. 

    FTT price continues to bottom

    FTX has seen massive withdrawals from users starting Monday, resulting in a freeze on withdrawals the next day. FTX’s native token, FTT, is currently down more than 82%.

    FTT price chart (Source: TradingView)

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