Monday, November 28, 2022

Binance’s deal to buy FTX may collapse over ‘big hole’ in finances

Binance was taken aback by “a big hole it found in FTX’s finances”, a report said.

• November 9, 2022
Binance, FTX

Cryptocurrency exchange company Binance is speculated to walk away from a deal to buy exchange company FTX, per a report from the Wall Street Journal, citing a person familiar with the matter.

On Wednesday, WSJ reported that Binance was taken aback by “a big hole it found in FTX’s finances”.

“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,” The report quotes Binance as saying

On Tuesday, Binance moved to acquire FTX cryptocurrency exchange after signing a non-binding Letter of Intent (LOI).

“This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to acquire and help cover the liquidity crunch fully. We will be conducting a full DD in the coming days,” Binance tweeted on Tuesday.

This move will help to solve FTX’s “liquidity crunch,” according to Binance CEO Changpeng Zhao.  FTX boss Sam Bankman-Fried responded to the news saying that development brings everything “full circle” as Binance will be the exchange’s first and last investor.  

Binance had said  it can withdraw from the deal “at any time” as Mr Zhao says that his company will have to do some due diligence before closing the deal.    

Both exchanges have been feuding with one another for a while, with Mr Zhao (CZ) announcing via Twitter on Sunday that his exchange is liquidating all of the FTX tokens (FTT) on its books.

Over the weekend, Mr Zhao tweeted that Binance had decided to offload all of its FTT tokens after speculations around financial difficulties of Alameda Research, the trading firm linked to FTX.    

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

A composite of Governor Ademola Adeleke and NURTW members


Gov Adeleke warns protesting NURTW members against violence

There were protests in motor parks in Osogbo at Old garage motor park, Okefia, Olaiya and Aregbe.

A composite of President Muhammadu Buhari and naira


Buhari advised to stop corruption, fuel subsidy to reduce borrowing

The DMO chief said the international market had closed its doors to borrowing, making it difficult for Nigeria to borrow.

Anti-lockdown protests in China


Shanghai tightens security after anti-lockdown protests in China

“We want to live a normal life. We should all bravely express our feelings,” said a protester.

dust haze


Nigeria to experience dust haze, NiMet warns

The forecast warned that “dust particles are in suspension, the public should take necessary precautions,” urging people with asthma and other respiratory issues to be cautious.

An image Anambra Fire Service Truck


Fire razes perfume, wig shops in Onitsha

An early morning fire on Monday razed many perfumes, ladies’ wares, cosmetics and wig shops on Kano street near Onitsha main market in Anambra



Al-Shabaab terrorists attack hotel used by Somalia officials

“There is still heavy gunfire inside the hotel, and we hear explosions from time to time.”