Binance pulls out of FTX deal, Bitcoin crashes below $16,000
Crypto exchange Binance is officially out of the FTX agreement. According to an official statement, the company will not buy the competitor.
Via its official Twitter handle, Binance claims that regulatory pressure and other factors influenced their decision. The report claimed that the company reviewed FTX’s books and decided to back out of their non-binding agreement. The company so:
As a result of corporate due diligence, as well as recent news reports of misappropriated customer funds and alleged US agency investigations, we have decided not to pursue the potential acquisition of
Binance goes away, the crypto industry in the dark
Prior to the official announcement, there was much speculation that Binance was pulling out of the deal due to potential legal ramifications. The company claims it was trying to protect crypto investors.
Thousands of users report that their money remains stuck on FTX. The crypto exchange halted new withdrawal requests yesterday due to a “liquidity crisis.”
Binance reportedly sought to fill this gap by acquiring the company and providing liquidity to its users. However, the situation went “beyond our control or ability to assist,” the company claimed, adding:
Whenever a major player in an industry fails, retail consumers will suffer. We have seen in recent years that the crypto ecosystem is becoming more resilient, and we believe that in time, outliers who abuse user funds will be weeded out of the free market.
As a result of today’s event, the crypto market has experienced huge losses. The number one cryptocurrency by market capitalization, Bitcoin, is trading well below its 2020 all-time high. BTC’s price is trading at $16,000 with 11% and 20% losses over the last 24 hours and the last week respectively.
Beyond the price action of major cryptocurrencies, which continue to record new lows for 2022, this week’s events are negatively impacting the crypto industry. In the US, regulators are already announcing investigations and condemning the sector for “harming” investors.
Across the crypto community, consensus points toward tighter rules and darker days for the nascent asset class.
Don’t know what to say anymore.
Just want to say that things seem bleak right now, and they are. Emotions are high. Recovery seems impossible.
Just don’t do anything drastic guys. It’s not worth it.
— Hsaka (@HsakaTrades) 9 November 2022
