Breaking: Binance Might Scrap FTX Takeover Over Poor Internal Review

After less than a day of assessing the company, cryptocurrency exchange giant Binance is very unlikely to proceed with its proposed acquisition of struggling rival FTX, according to a person with knowledge of the situation. Due diligence was a condition of Binance’s non-binding letter of intent for the acquisition, which was made public on Tuesday as FTX’s financial situation appeared to be spiraling out of hand.

After evaluating FTX’s internal data and loan agreements for around half a day, Binance has decided strongly not to complete the deal, an anonymous source close to the company claimed.

Reversing course would be another remarkable development in a week of drama. A liquidity constraint at FTX resulted from the report, which raised questions about the health of Sam Bankman-crypto Fried’s empire, which comprises both companies. On Sunday, Binance CEO Changpeng Zhao announced that he will liquidate his holdings of the FTT cryptocurrency, which was issued by FTX.

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