Binance may scrap dramatic FTX rescue deal after reviewing rival's books: Report
moneycontrol.comLeading cryptocurrency exchange Binance may rescind its FTX rescue deal, Coindesk has reported. According to the publication, it is likely to not follow through with the proposal to acquire its troubled rival firm after reviewing the books of the company.
Binance boss Changpeng Zhao announced a day ago that he had signed a letter of intent to buy FTX after the firm asked him for help owing to a "major liquidity crisis".
The deal between high-profile rivals Sam Bankman-Fried, FTX's CEO, and Zhao came as speculation about FTX's financial health snowballed into $6 billion of withdrawals in the 72 hours before Tuesday morning.
Bitcoin fell in the process to its lowest level in two years.
A nonbinding letter of intent was issued by Binance for the takeover that rocked the crypto sector on November 8. And now it seems that within hours of reviewing FTX’s books, especially loan commitments, the crypto exchange is rethinking its decision.
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