Binance, the world’s largest crypto exchange, has backed out of its agreement to purchase FTX. Sam Bankman-Fried apologizes for the issue pointing out that the issues are with FTX global and not with the US-based platform.
The biggest cryptocurrency exchange in the world, Binance, has withdrawn from its deal to buy FTX just one day after agreeing to save the business on Tuesday. Binance said that its choice was influenced by an examination of FTX’s management of client deposits as well as purported US government inquiries against the company. The announcement on Wednesday stated that even Binance couldn’t improve FTX’s financial situation.
“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.” said the exchange.
Binance pointed out that if a large company in the sector falters, retail customers suffer. It did, however, mention that dishonest individuals who exploit customer funds will eventually be weeded out by the free market. He also denied allegations that he orchestrated the downfall of FTX.
Beginning on Monday, FTX encountered extreme withdrawal demand, which resulted in the company blocking customer withdrawals the next day. Changpeng Zhao (CZ), the CEO of Binance, revealed later that Binance has inked a non-binding agreement to buy FTX and aid it in navigating its liquidity crisis. But he made it clear straight away that Binance had the ability to end the deal at any moment.
Sam Bankman-Fried Apologizes and Vows FTX to Make Customers Whole
Sam Bankman-Fried apologized in writing after the collapse of his cryptocurrency exchange. He discussed making customers whole and identifying the best course of action for all parties.
In a Twitter thread, he shed some insight on the precarious state of FTX. He first apologized for the whole situation and said that he should have done better because he had made at least two significant errors, including failing to accurately determine his company’s liquidity. He accepted full responsibility for what happened with FTX and made it clear that making users whole was his top concern.
SBF stated that his team is now focusing on “doing all they can to raise liquidity” in light of the Binance deal crashing. If the business is successful in making users whole, it will next try to make investors and staff whole as well. SBF said that he is unable to guarantee their success and does not make any promises they will succeed. He also noted that his other brainchild – Alameda Research – will stop trading crypto “one way or another.”