Crypto exchange Binance announced it decided to walk away from its rescue deal to buy FTX. Binance said its hope was to be able to support FTX’s customers to provide liquidity. However, after conducting a review of the company’s finances, Binance announced that the issues are beyond its control or ability to help.
Binance backing out of the deal leaves Sam Bankman-Fried’s crypto empire on the verge of collapse and raises questions on what is next for FTX, which was valued at $32 billion by private investors earlier this year.
According to rumors, Sam Bankman-Fried, whose net worth dropped from more than $15 billion to around $1 billion after the collapse of FTX, told investors yesterday about the company’s emergency funding need in order to cover an $8 billion shortfall, which is a result of withdrawal requests received in recent days. This was followed by the announcement from Binance of changing its plans to acquire the company.