Crypto Assets: FTX CEO Considers Options After Binance Deal Failed
by Hannah Lang and Angus Berwick
NEW YORK (Reuters) – Crypto asset exchange FTX chief executive Sam Bankman-Fried has told staff he is considering all options available to him after reaching an agreement on Wednesday to acquire the operations of FTX failed outside the United States (FTX.com) by its rival Binance.
The deal, announced on Tuesday, aimed to help FTX weather a “cash crisis” as the cryptocurrency market has seen several similar bailouts this year, with investors turning their backs on riskier assets as interest rates rise.
The cryptocurrency market is only two-thirds of its peak at over $1,000 billion.
“After reviewing reports of mismanagement of its customers’ funds and allegations of investigations by US authorities, we have decided not to proceed with the acquisition of FTX.com,” Binance said in a statement on Wednesday.
In a note to his staff, Sam Bankman-Fried stated that Binance had not raised any concerns about the transaction.
“I am terribly sorry it has come to this,” he wrote. “It’s my fault, all my fault, and it sucks. I’m sorry, even if it doesn’t change anything.”
A representative from FTX did not immediately respond to a request for comment.
US regulators are reviewing FTX.com’s operations, including the management of its customers’ funds, as well as its cryptocurrency lending activities.
(Reportage Hannah Lang, Angus Berwick, Selena Li, Tom Westbrook, Georgina Lee, Anshuman Daga, Vidya Ranganathan, Summer Zhen, Hannah Lang and Chris Prentice; Version française Camille Raynaud)
It is always my pleasure to provide insightful information on important topics and if you have learned something from my article then I thank you for taking the time to share it with your friends or family.
We put a lot of heart and invest a lot of time trying to bring you the most interesting articles.
You would encourage us to do it even better in the future. Thank you!