The cryptocurrency market has fallen by about two-thirds from its peakup to 1.07 billion dollars.
This week cryptocurrencies faced drops of up to 20% and even Bitcoin entered the $16,000 arena after news broke that the exchange FTX was unable to cope with a high liquidation demand causing a run among investors. The industry was again affected by mistrust after a new bankruptcy case, after the experience of Celsius and 3ARROWS that also produced a collapse in the value of cryptocurrencies and a “snowball” effect.
“As a result of the corporate due diligence, as well as the latest news related to the mismanagement of client funds and the alleged investigations by US agencies, we have decided that we will not pursue the potential acquisition of FTX.com“, said Binance in a statement on Wednesday.
This leaves Bankman-Fried, 30which had been looking for the lifeline of other digital asset platforms, with options increasingly scarce.
“I am working, as fast as I can, on the next steps. I wish I could give you all more clarity than I can,” Bankman-Fried said from the Bahamas, where FTX is based, in a message to employees seen by Reuters.
The executive said in the staff message that their goals were to protect customers and provide whatever help he could for staff and investors. “I will keep fighting for those (goals), to the best of my ability, as long as it’s right for me. I’m exploring all options.”.
Bankman-Fried also told employees that Binance had not previously expressed reservations about the deal. “I am deeply sorry that we got into this place, and for my role in it,” he wrote.
Bankman-Fried, whose wealth was estimated at $17 billion in September according to Forbes, he had made billions arbitraging cryptocurrency prices in Asia as of 2017 before running FTX.
FTX.com is also facing scrutiny from US regulators for his management of money of clients, as well as for their activities of crypto loan.
Source: Ambito
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