Binance may scrap its proposal to acquire cryptocurrency exchange FTX, after examining FTX’s “internal data and loan commitments,” according to an unnamed source familiar with the matter cited by CoinDesk on Wednesday

See related article: Binance’s pending acquisition of FTX may attract attention of antitrust regulators

Fast facts

  • According to an unnamed source cited by Bloomberg on Wednesday, the gap between FTX’s assets and liabilities may be more than US$6 billion.
  • FTX boss Sam Bankman-Fried announced on Tuesday that the world’s largest exchange had agreed to buy its troubled rival amid reports of solvency issues. 
  • Binance Chief Executive Officer Changpeng Zhao confirmed Bankman-Fried’s announcement on Tuesday, but added that Binance may “pull out of the deal at any time.”
  • Binance’s non-binding letter of intent for the acquisition, although intended to fully acquire FTX, will be dependent on proper due diligence, Zhao said in a tweet on Tuesday.
  • Bitcoin traded under US$17,000 for the first time since November 2020, at around 1:40 a.m. in Hong Kong, according to CoinMarketCap data
  • FTX token, FTT, was down 77% in the last 24 hours and was trading at US$3.86 at 1:40 a.m. Hong Kong time, while Binance’s BNB was down 23% to US$289.51.

See related article: Binance becomes white knight for fallen FTX: How did we get here?