Binance backs out of FTX deal — Bitcoin tumbles below R300,000

Changpeng “CZ” Zhao walked away from his bailout for Sam Bankman-Fried’s FTX.com almost as quickly as he offered a rescue.

Zhao himself admitted there was no “master plan” to take over FTX. His about-face leaves the fate of the beleaguered exchange and its clients uncertain and sparked renewed concerns about contagion risks across the crypto industry.“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,” Binance said in the statement.

Coinbase Chief Executive Officer Brian Armstrong said Tuesday in a Bloomberg TV interview that if the deal with Binance fell through, it would likely mean FTX customers would take losses.Sam Bankman-Fried told FTX.com investors Wednesday that without a cash injection the company would need to file for bankruptcy, according to a person with direct knowledge of the matter.

“I f—ed up,” Bankman-Fried told investors on the call, according to people with knowledge of the conversation. He said he would be “incredibly, unbelievably grateful” if investors could help.The acknowledgment of his firm’s deepening troubles and limited options is a stunning turn for the crypto industry’s onetime wunderkind, who was once worth $26 billion and likened to John Pierpont Morgan.

Source: Digital Coin News (digitalcoinnews.net)

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