Binance will not buy FTX

Crypto exchange Binance decided to walk away from a deal to buy FTX after conducting a review of the company’s finances. Binance, who announced a rescue offer for FTX, said its hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond its control or ability to help.

According to Patricia Kowsmann and Caitlin Ostroff from The Wall Street Journal, people familiar with the matter said that Sam Bankman-Fried, FTX Chief Executive, told investors today about the company’s emergency funding need to cover a shortfall of up to $8 billion due to withdrawal requests received in recent days. FTX has halted both crypto and fiat withdrawals from the exchange.

This call with investors came around the same time Binance announce its plan to walk away from the acquisition plan, which raises questions on what is next for investors who entrusted their funds to FTX, the second-largest crypto exchange.

By Davit Kirakosyan

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