Binance’s market-altering deal to acquire rival FTX might not go through, sources close to the matter told CoinDesk.
On Tuesday, Binance announced a non-binding letter of intent to take over FTX but noted that it needed to perform due diligence on the struggling exchange. Less than a day into the process, Binance is strongly leaning against going through with the deal, the person revealed.
Binance is reportedly reviewing the exchange’s internal data and loan commitments and is yet to decide on whether to complete the acquisition.
However, neither Binance nor FTX have commented on the issue. If Binance scraps the deal, FTX could find itself in a crunch — its native token FTT lost almost 80% of its value in the past several days, its reserves are depleted, withdrawals from Ethereum halted, and user deposits aren’t eligible for any type of insurance.