FTX on the Verge of Dying as Binance Bails on the White Knight Rescue

Fazzaco learned that Binance, the cryptocurrency exchange, made an announcement earlier today (November 10), stating that the firm officially abandoned the intent to acquire FTX. FTX (FTT), the token, plummeted more than 80% to below $3 in 24 hours in response. Binance's bail on the acquisition is undoubtedly, the most fatal punch that hits on the troubled crypto firm.

Two days ago, however, both companies were still happy to announce that Binance is planning to acquire FTX. "This afternoon (November 8), FTX asked for our help," said Changpeng Zhao, CEO at Binance on Twitter, "there is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days."

Nevertheless, the White Knight who came to FTX's rescue, announced the abandonment of the rescue plan after a due diligence investigation, putting FTX in a desperate position. "As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com," according to the announcement of Binance.

We have already witnessed a lot of smaller crypto platforms suffering from the tolls taken by the crypto winter this year, but now even an industry leader like FTX is ending up in a bleak situation as they are in today. In fact, earlier this year, FTX was once the White Knight who lent a helping hand to several other crypto firms in financial troubles.