End of the story: Binance steps back and leaves FTX alone

Who was the hero of the story a few days ago, today becomes the villain. The world’s most popular exchange, Binance, announced that it is withdrawing from negotiations and will not buy FTX.

The news was released a few hours ago. Through his twitter account Binance CEO Changpeng Zhao called the failure of the transaction unfortunate.

“It’s a sad day. We tried, but…,” said the executive.

Initially, it was hoped that the transaction would be completed successfully. Above all, to provide the liquidity that FTX needs and to offer the support that its clients demand. However, the deal didn’t materialize after an analysis of FTX’s accounts, and taking into account the authorities’ investigations.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of [FTX],” Binance said on Twitter.

Additionally, Binance noted that over the past few years the cryptocurrency landscape has become more resilient and is confident that, over time, “outliers that misuse users’ funds will be eliminated by the free market”.

It’s important to note that last Wednesday, Exchange FTX founder and CEO Sam Bankman Fried said he needed emergency funding because of the large number of customer withdrawal requests. Transactions that affected the Exchange’s liquidity.

For their part, several analysts believe that Binance’s “possible” help to withdraw from the operation is a strategy to demoralize the users of the rival exchange and further complicate the state of FTX’s finances. “Maybe it’s all about playing on the emotions of market viewers,” they claim.

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