Binance walks away from FTX deal, citing ‘mishandled customer funds,’ regulatory scrutiny

admin November 10, 2022

0 1 minute read

Binance has announced that it will not pursue the option to buy FTX due to due diligence, reports that a US agency is investigating the exchange for its handling of customer funds.

As a result of our corporate due diligence and recent news reports regarding the mishandling of client funds and alleged investigations by US government agencies, we have decided not to pursue any potential acquisitions. https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

Binance said FTX’s problems are out of its control and beyond its ability to help.

The Changpeng Zhao-led exchange added that the crypto ecosystem will become stronger as “regulatory frameworks develop and the industry continues to evolve towards greater decentralization.”

FTX has suspended customer withdrawals after reports of reserve instability.

Following this news, FTT fell to $2.1 and Bitcoin (BTC) fell to $15,800, according to CryptoSlate data.

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Oluwapelumi believes in the transformative power of Bitcoin and the blockchain industry.

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