Binance deal for FTX collapses, crypto worries mount


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NEW YORK — A deal for major cryptocurrency exchange FTX collapsed on Wednesday as bigger rival Binance said it was pulling out, a Binance spokesperson said.

Binance signed a nonbinding agreement on Tuesday to buy FTX’s non-U.S. unit to help cover a “liquidity crunch” at the rival exchange, but the deal was subject to further due diligence.

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The Wall Street Journal in its report quoted Binance as saying: “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.”

A spokesperson for Binance confirmed the WSJ report.

The turmoil over FTX has hit crypto prices. Bitcoin , the biggest cryptocurrency by market value, was last down 13% on the day at $16,277.

(Reporting by Hannah Lang; editing by Megan Davies and Anna Driver)


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