binance ftx

On Tuesday, the world woke up to startling news that Binance had acquired its rival, FTX to “cover its liquidity crunch.” This was however subject to a due diligence exercise.

Binance has now stated that it is pulling out of the deal.

Also Read: Crypto Exchange FTX to Officially Roll Out in Africa

Why Binance Backed out of FTX Acquisition Agreement

Binance, in a  series of tweets, says the move to backtrack on the acquisition was “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”

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”

“Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.”

“As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.”

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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