Binance has pulled out of the deal to acquire cryptocurrency exchange, FTX.com.
The Zhao Changpeng-led company had indicated interest to buy FTX from its founder, Sam Bankman-Fried at an undisclosed amount.
Both Changpeng and Bankman-Fried confirmed the acquisition plan on Twitter, a development many investors hoped would aid FTX financially.
In a statement announcing that the deal had fallen off, Binance cited reports of mishandling customer funds and alleged US agency investigations as the reason for the development.
According to Binance, the reports had made Binance ineptitude to offer liquidity to FTX customers as hoped.
The statement read: 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
“In the beginning, 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.
“Every time a major player in an industry fails, retail consumers will suffer. We have seen over the last several years that the crypto ecosystem is becoming more resilient and we believe in time that outliers that misuse user funds will be weeded out by the free market.
“As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.”