Ian Allison, reporting for CoinDesk: Cryptocurrency exchange giant Binance is highly unlikely to go through with its proposed acquisition of struggling rival FTX after less than a day of reviewing the company, according to a person familiar with the matter. Binance’s non-binding letter of intent for the takeover — announced Tuesday as FTX’s financial position appeared to be spiraling out of control — hinged on Binance performing due diligence. Roughly half a day into that process of reviewing FTX’s internal data and loan commitments has led Binance to strongly lean against completing the transaction, the person said. UPDATE: Binance has scrapped its letter of intent to buy rival crypto exchange FTX, according to a Binance spokesperson.

“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” the spokesperson told CoinDesk. “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,” the spokesperson added.

Read more of this story at Slashdot.

Source: Slashdot – Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover [UPDATE]