Cryptocurrencies: Binance gives up buying FTX, Bitcoin falls

Bitcoin continued its descent into hell in recent days, almost a year having reached its highest… The announcement this Wednesday evening of the first cryptocurrency trading platform, Binance, to give up the acquisition of its struggling competitor FTX , once again caused prices to fall very violently.

Over the past 24 hours, at 11 p.m. this Wednesday, Bitcoin lost nearly 15%, pointing to less than 15,000 euros.

After conducting an audit of FTX's operations, "we have decided not to proceed with the acquisition operation," Binance explained in a tweet, after announcing the day before that it wanted to buy the platform.

The company also mentions the appearance of press reports on mismanagement of client funds by FTX and on investigations by US authorities.

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 https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

The future of FTX is now uncertain.

“At first, our hope was to be able to help FTX customers provide liquidity, but issues are beyond our control or beyond our ability to help,” Binance noted.

However, FTX was still considered a solid player in the sector until recently.

Its founder, Sam Bankman-Fried, is a figure in the world of cryptocurrencies, and FTX had been valued, during its last fundraising in January, 32 billion dollars.

But doubts have recently emerged about his accounts and his relationship with the Alameda cryptocurrency investment fund, also founded by Sam Bankman-Fried.

FTX customers could suffer

Binance boss Changpeng Zhao, saying FTX asked him for help due to a “significant liquidity crisis,” signed a letter of intent on Tuesday to buy FTX, without the company’s US arm. .

However, he also specified that he would conduct an audit for a few days, a usual procedure in merger-acquisition operations, before confirming his intention.

“Every time a major player in an industry goes bankrupt, consumers suffer,” Binance pointed out on Wednesday, suggesting that FTX customers could suffer from the situation.

“We have seen over the past few years that the crypto ecosystem is becoming more resilient and we believe that over time, outliers that misuse user funds will be eliminated by market force,” the company added. .

This instability, and the doubts cast on FTX, the fourth cryptocurrency exchange platform, once again dragged the market down with Binance's announcement.

Bitcoin had reached its highest levels a year ago, climbing to almost 60,000 euros.

It has since continued to fall, to spend this Wednesday evening below the 16,000 euro mark.