Binance halts FTX acquisition deal

Joy Onuorah
Joy Onuorah

Binance has announced that it would not proceed with the plan of acquiring FTX.

Recall that most cryptocurrencies experienced a decrease in the immediate aftermath. However, neither Sam Bankman-Fried nor FTX made any public announcements.

Safe to mention that many people and publications have expressed their skepticism over whether Binance would actually follow through with its acquisition of FTX since Changpeng Zhao and Sam Bankman-Fried revealed they had signed a non-binding letter of intent to save the latter’s business.

Sadly, the skeptics were proven to be correct when Binance stated on Wednesday afternoon that it would not be moving forward with the acquisition.

According to a different story, Sam Bankman-Fried warned investors before Binance made its announcement that his business would probably fail without a substantial infusion of funds. The business allegedly has a $8 billion shortfall. The legal and compliance team at FTX reportedly left in droves during the day.

The website of Alameda Research became private around the time of Binance’s announcement. The FTX website experienced many outages in the hours right after the discovery. Although it is not entirely apparent whether Tuesday’s declaration, which indicated that neither FTX US nor were implicated in the problem, is still true, the website of FTX US appears to be unaffected.

The entire crypto industry was impacted by the news. Bitcoin was down 15%, Ethereum was down 18%, and BNB was down almost 20% at the time of writing. The most severely affected stock, FTT, fell from $22 on Monday to $2.20. Companies including Coinbase, Robinhood, and Microstrategy were also affected by the fallout, and at the time of writing, their stock prices had fallen between 8% and 20%.

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