Binance pulls out of the FTX purchase due to “huge hole” in its finances

Due to a significant financial gap, it is rumoured that cryptocurrency exchange business Binance may back out of an agreement to acquire exchange startup FTX.

The WSJ said on Wednesday that Binance was surprised by “a huge hole it identified in FTX’s finances.”

The story quotes Binance as saying, “Our objective was to be able to serve FTX’s clients to offer liquidity, however, the challenges are beyond our control or capacity to aid.”

After signing a non-binding letter of intent on Tuesday, Binance proceeded to purchase the FTX cryptocurrency exchange (LOI).

This afternoon, FTX requested our assistance.
There is a severe money shortage.
We signed a non-binding LOI intending to buy FTX.com to properly address the liquidity crisis to protect users.
Binance tweeted on Tuesday, “We will be doing a comprehensive DD in the next few days.

FTX’s “liquidity bottleneck” will be alleviated by this action, according to Changpeng Zhao, CEO of Binance.
Sam Bankman-Fried, the CEO of FTX, replied to the news by stating that it “completes the circle” because Binance will be the exchange’s first and last investor.

Because Mr Zhao’s business will need to do some due diligence before concluding the acquisition, Binance had previously stated that it might withdraw from the agreement “at any time.”

Since both exchanges have been at odds with one another, Mr Zhao (CZ) tweeted on Sunday that his exchange is selling all of the FTX tokens (FTT) it has listed.

Mr Zhao tweeted over the weekend that Binance has decided to sell out all of its FTT tokens because of rumors regarding the struggling finances of Alameda Research, the trading company connected to FTX.