NEW YORK, Nov 9 (Reuters) – A deal for major cryptocurrency exchange FTX collapsed on Wednesday as bigger rival Binance said it was pulling out, a Binance spokesperson said.
Binance signed a nonbinding agreement on Tuesday to buy FTX’s non-U.S. unit to help cover a “liquidity crunch” at the rival exchange, but the deal was subject to further due diligence.
[1/2] Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
The Wall Street Journal in its report quoted Binance as saying: “Our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”
A spokesperson for Binance confirmed the WSJ report.
The turmoil over FTX has hit crypto prices. Bitcoin , the biggest cryptocurrency by market value, was last down 13% on the day at $16,277.
Reporting by Hannah Lang; editing by Megan Davies and Anna Driver
Our Standards: The Thomson Reuters Trust Principles.