According to representatives, crypto giant Binance has withdrawn its letter of intent to buy a rival FTX exchange. This decision in the letter is explained by the FTX management’s failure to comply with the required level of corporate prudence, as well as the latest news reports about incorrect handling of customer funds and the likely subsequent investigations of the US Securities Agency in this regard.
Earlier, the management of Binance expressed support for the FTX exchange that faced problems and were hoping to help their clients with providing liquidity. However, after a detailed study of the circumstances of the problems, it turned out that all issues are beyond the control or ability to help. Binance also noted that every time a major player in the crypto industry fails, customers suffer first of all.
Binance’s withdrawal of its FTX purchase offer caused a continuation of the wave of falling value of the FTT token, which lost more than 89% in price over the week and was trading at $2.84 at the time of publication of this news.