HomeCryptoBinance is Highly Unlikely to Complete FTX Rescue Deal: Report

Binance is Highly Unlikely to Complete FTX Rescue Deal: Report

Binance, the world’s largest crypto exchange, is reportedly ready to back out of a deal to rescue FTX only a day after announcing its buyout deal. 

  • A review of FTX’s financials has apparently led Binance to “strongly lean against completing the transaction,” a person familiar with the matter told CoinDesk. 
  • FTX and Binance announced the buyout deal yesterday, as FTX experienced a bank-run style influx of withdrawal demand, and ultimately appeared to pause withdrawals early on Tuesday. 
  • FTX CEO Sam Bankman-Fried (SBF) said at the time that Binance’s assistance would help protect customers, clear out liquidity crunches, and ensure assets were backed 1:1. 
  • However, Binance’s CEO Changpeng Zhao also clarified that the deal was non-binding. “Binance has the discretion to pull out from the deal at any time,” he added. 
  • On Wednesday, CZ also called on those involved to not comment on the deal “publicly or internally,” and told those not directly involved not to ask about it. “Things will play out,” he said.
  • After CoinDesk revealed Binance’s reversal, crypto markets took another major hit. Bitcoin is now trading close to $17,100, its lowest level in 2022. 
  • FTX Token (FTT) has dumped to just $4.16, compared to over $22.00 at the start of the week.

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