Binance pulls the plug on the FTX deal

In yet another twist of events, Binance has decided to pull the plug on the deal to acquire FTX. But why the sudden change of heart?

The reasons given

Binance official twitter made it public earlier today that they indeed were pulling the plug on the deal. And in the tweet, they gave a few reasons for doing so.

They are citing that they discovered mishandling of customer funds during their due diligence. As well as alleged US agency investigations. These investigations will presumably be regarding the mishandling of customers' funds. So while it initially may look like two reasons, it is most likely the same underlying reason.

Sadly this was pretty much to be expected after Sam Bankman-Fried Deleted a pair of tweets he made. But thanks to the WayBack Machine we can of course view them. As well as the myriad of screenshots people took of them. As they say, nothing disappears from the internet.

In these tweets Bankman, the CEO of FTX assures everyone that the assets are fine. As well as assuring everyone that FTX has enough to cover all client holdings. And that they do not invest client assets. Things that look like they very much are not true. And Bankman desperately deleting the tweets more or less confirms this. He was probably hoping the deal with Binance would go through and people would forget about the tweets. But alas, the internet does not forget.

By the looks of things, it appears to be a pretty much open-and-shut case for legal actions against Bankman. It might very well lead to him doing time for fraud in the US. Hopefully this will lead to people being able to get some money back through the courts.

What are your thoughts on this, are you surprised the deal fell through? Please share your thoughts in the comment section down below. If you would like to support me and the content I make, please consider following me, reading my other posts, or why not do both instead.

See you on the interwebs!

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