Announcing the news on Twitter, Binance, the world’s largest crypto exchange, says: “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.”
Reuters reports that the US Securities and Exchange Commission (SEC) is investigating FTX’s handling of customer funds and its crypto-lending activities.
Earlier this week, Binance CEO Changpeng ‘CZ’ Zhao tweeted that his firm had signed a non-binding letter of intent to acquire FTX to help protect users’ holdings amid a “liquidity crunch”.
