Binance CEO Backs Out of Acquiring Bankrupt FTX Exchange

Binance CEO Backs Out of Acquiring Bankrupt FTX Exchange

• Binance CEO backed out of acquiring FTX exchange, citing many reasons.
• Zhao shares Binance’s internal note to come out clean “in the spirit of transparency.”
• The broken trust could trigger regulators to take more stringent measures, predicts Zhao.

Binance CEO Changpeng Zhao backed out of acquiring FTX exchange, which is on the verge of bankruptcy. Zhao stated many reasons to supplement his decision to back away from closing the deal.

In a Tweet, Zhao stated:

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 http://FTX.com.

Earlier, Binance signed a non-binding Letter of Intent (LOI) with the intention of fully buying FTX. However, citing many reasons, Zhao pulled out of the deal.

Zhao took the initiative to come clean by sharing the actual note sent to all Binance teams globally. He tweeted, “In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.”

In the note, Zhao states that he did not intentionally work towards manipulating the FTT token prices. However, Youtuber Coffeezilla, an internet scam detective, proves otherwise.

Additionally, while shedding more light on his retrieval from the acquisition, Zhao stated that the near collapse of FTX has shaken the trust in the crypto industry. As such, he added that this could trigger regulators to take more stringent measures and that getting licenses around the globe could get even harder.

Subsequently, Zhao justified his retraction by saying, “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.”

Notably, he added that FTX going down is “not a win for us” in the note. However, the above statement appears to stand against Cofeezilla’s view of seeing the two (Bankman-Fried, and Zhao) as haters.

Moreover, Zhao shared his regret of not being able to complete the acquisition in a tweet:

Sad day. Tried, but

— CZ Binance (@cz_binance) November 9, 2022

In the aftermath of the near-bankrupt FTX exchange, Binance and other large exchanges pledged to provide proof that they hold customers’ funds in secure reserves, which are readily available for withdrawals.

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