Binance Makes A U-turn From the FTX Takeover Proposal
In the epic of Binance and FTX, a new turn has taken place as Binance has declared on Twitter that the exchange is leaving its strategy to acquire the beleaguered entity. For the move’s justification, Binance specified that the funds of the consumers have been exploited by FTX. The initial investor for the FTX exchange was Binance, the biggest crypto exchange across the globe.
Binance Leaves the Deal to Acquire FTX
It was shared in a Twitter post by Binance that as a consequence of the exclusive reports dealing with the mishandling of the clients’ funds as well as the supposed investigations done by the US agency, they have determined not to move ahead to acquire FTX.com. After this declaration, Huobi’s acquirer, Justin Sun, mentioned collaborating with FTX to find out a solution to this situation.
Related: FTX Vs. Binance Battle Goes Three Dimensional with Bybit
It was again shared this post on Twitter by Sam Bankman-Fried (the CEO of FTX). The rumours point out that FTX has a gap of nearly $8 billion. The bailout of Justin Sun may be only a stunt for marketing. Furthermore, OKX mentioned that the platform will systematically delist the contracts which have poor liquidity. Among these are ASTR, SOS, WNXM, SC, as well as BTT.
At the moment, it is rumored that the investment of Alameda in United States-based stocks has resulted in massive losses. Huobi Research brought to the front that the projects straightly invested on the behalf of Alameda, FTX, as well as the centralized organizations with which direct borrowing/lending and the rest of the cooperation relationship have been carried out by FTX, will have a great significance among the respective Lehman episode’s victims.
FTX to Submit Bankruptcy Filing If It Remains Unsuccessful in Obtaining Funds
Binance has not offered particulars regarding the problems faced by FTX. Even now, it has been specified by the press reports that a deep gap might have been discovered by the crypto exchange between the assets as well as the liabilities of FTX, amounting to more than $6B. Furthermore, SBF revealed that they would need to submit a bankruptcy filing if they fail to secure the cash investment. This information was given by a person acquainted with the issue.
