The world's largest cryptocurrency exchange (by trading volume), Binance, has said it will withdraw from an agreement with the exchange encryptions FTX.
On Tuesday, Binance signed a letter of intent to buy its troubled rival FTX in what appeared to be a possible rescue of the latter amid a liquidity crisis. But after 24 hours, the plan collapsed.
Binance backed down after reviewing the company's structure and books, it said in a statement to Wall Street Newspaper.
"Our hope was to be able to support FTX customers by providing liquidity, but the issues are beyond our control or ability to assist," Binance said.
“As a result of corporate due diligence, as well as the latter news regarding mismanagement of client funds and alleged investigations by US agencies, we have decided not to pursue the potential acquisition of FTX,” Binance said in a tweet.
“Every time a major player in an industry fails, retail consumers suffer,” Binance continued. "Over the last few years we have seen the crypto ecosystem become more resilient and we believe that over time all companies that abuse user funds will be eliminated from the free market."
