11-10-2022 icon

FTX’s strategic deal with Binance crumbles in less than 48 hours

By Lucy Adegbe
Binance debit card

Barely two days after Binance owner Changpeng Zhao publicized his intent to assist contender FTX, Binance mentioned that it is no longer pushing through with its FTX acquisition transaction.

In a twitter thread, the CEO analyzed his new decision to pull out of the contract it made with the FTX protocol, referencing allegations against FTX misuse of users’ assets and suspected United States regulatory scrutiny.

The regulatory scrutiny is presumably related to the Wednesday Bloomberg publication which remarked that the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) are looking into FTX’s likely misappropriation of investment inflow.

Binance tweet also highlighted that it was committed to bailing FTX out of its solvency crisis by assisting its users with cashflow, however, recent developments seem to be above control.

Additionally, the protocol cited that for every time a prominent industry player fails, retail consumers will have to be adversely impacted. Nonetheless, the passing crisis is helping to build a more resilient ecosystem and with time, the bad eggs will fade away from the space, Binance also stated.

FTX was reported to have logged off from its official site after Binance’s Twitter publications. The troubled protocol returned about two hours later with a displayed notice that the trading protocol has halted outgoing payment transactions and is nit in support of incoming payments as well.