Binance tweeted, “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.”
Binance has pulled out of its agreement to purchase FTX after going through the latter's finances.
According to official reports, Binance had discovered a “big hole” in FTX’s balance sheet within a day of beginning its investigation of FTX. Binance noted that it walked away from the deal after conducting its due diligence on FTX.
Moreover, Binance alleged that recent news regarding US regulators investigating FTX over the misappropriation of customer funds was another reason behind the termination of the agreement.
As a result, the value of the FTX Token (FTT) has fallen by over 85% within the last 48 hours, with the token currently trading at $2.68.
Meanwhile, Sam Bankman-Fried is seeking alternatives to avoid facing bankruptcy. He said if FTX does not receive adequate cash injection, it may end up filing for bankruptcy.
Sam Bankman’s leaked Slack message stated,
“I'll keep fighting for those, as best as I can, as long as it's correct for me to. I'm exploring all the options."
