FTX will not be rescued by its main competitor. Binance claimed it didn’t like what it saw in the company’s books one day after unveiling a possible agreement to purchase the cryptocurrency exchange. “As a consequence of corporate due diligence, as well as the current press stories alleging mismanaged client cash and suspected US government investigations,” Binance tweeted on Wednesday afternoon, “we have chosen not to pursue the prospective purchase of FTX.” “We hoped to assist FTX’s clients in providing liquidity, but the challenges are beyond our control or capacity to assist.”
The failed takeover effort wraps off a turbulent week for FTX. Coinbase produced a report on November 2nd revealing that the bitcoin exchange was experiencing a liquidity problem. In reaction to the story, Binance CEO Changpeng Zhao declared that the business will sell $529 million worth of FTX’s FTT token, causing the cryptocurrency’s value to plummet and sparking a public feud between the rival exchanges.
