Crypto exchange Binance has just announced it will not buy FTX due to the fact that it would not be able to solve the platform's problems.
As the company has said in a statement:
"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.com."
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Last November 6, Binance CEO Changpeng Zhao announced the exchange's desire to divest the FTX utility token (FTT). The assets, along with BUSD, totaling around $2.1 billion, were the result of the company's withdrawal from investing in the platform.
FTT's price crashed nearly 30% in a few hours amid fears about FTX's financial strength. In particular, the price of the token has dropped 90% over the past 7 days.
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On November 8, Sam Bankman-Fried and Changpeng Zhao announced they had entered into a strategic partnership aimed at resolving the liquidity crisis and hinted at a possible acquisition of FTX by the Binance exchange.
At the time, Zhao emphasized his company has the right to "reject the deal at any time."