Binance deal for FTX collapses, crypto worries mount By Reuters

By Hannah Lang and Angus Berwick

NEW YORK (Reuters) – A deal for main cryptocurrency change FTX collapsed on Wednesday as larger rival Binance mentioned it was pulling out after doing due diligence on the proposed acquisition.

Binance signed a non-binding settlement on Tuesday to purchase FTX’s non-U.S. unit to assist cowl a “liquidity crunch” on the rival change, however the deal was topic to additional due diligence.

“On account of company due diligence, in addition to the most recent information stories concerning mishandled buyer funds and alleged US company investigations, we have now determined that we’ll not pursue the potential acquisition of FTX.com,” Binance mentioned in a press release.

A consultant for FTX didn’t instantly reply to a request for remark, however Chief Government Officer Sam Bankman-Fried instructed workers in a Slack message seen by Reuters that Binance had not beforehand expressed reservations concerning the deal.

The turmoil over FTX has hit crypto costs. , the largest cryptocurrency by market worth, was final down 13% on the day at $16,277.

FTX.com can be going through scrutiny from U.S. regulators over its dealing with of buyer funds, in addition to its crypto-lending actions.