Binance Backs Out Of FTX Rescue

Binance announced on Wednesday that it’s backing out of plans to acquire FTX, leaving the cryptocurrency exchange on the verge of collapse. On Monday, FTX was facing a liquidity crunch as its native FTT token faced massive sell-offs after Binance CEO Changpeng Zhao made public that it was selling its holdings in the token. FTX CEO Sam Bankman-Fried reached out to venture capitalists and investors to raise money, and he reached out to Zhao as part of his efforts. Zhao agreed to step in, but his company quickly reversed course, citing reports of “mishandled customer funds and alleged U.S. agency investigations.”