Breaking News: Havoc in The Digital Asset World!!

A deal to buy its troubled rival FTX was abruptly abandoned by the Big Guy of cryptocurrency exchange, Binance, who claimed that the company's issues were beyond their control and ability to help.

The largest cryptocurrency exchange in the world, Binance, claimed to have reviewed FTX's financial records as part of the due diligence procedure. It then announced the deal was off due to reports of mishandled customer funds and alleged US agency investigations.

This reversal is the most recent turn in a dramatic and quick-paced saga involving the most influential figures in cryptocurrency. The whole incident started on Sunday with a Tweet posted by the Chief Executive Officer (CEO) of Binance, ChangPeng Zhao, that Binance would sell its holdings of FTX's digital token, known as FTT, adding to the pressure on FTX. Over the course of the following week, the token had then lost almost 80% of its value.

In conjunction with this, on Wednesday, Binance announced that it would buy FTX amid a spike in customer withdrawals. Just when the markets were curious about whether this deal would fall through (read the previous article regarding this topic here: https://www.wikifx.com/en/newsdetail/202211092634147749.html), on Thursday, Binance dropped the bomb of declining this purchase abruptly.

Sam Bankman-Fried, the 30-year-old star of the crypto world who founded FTX in 2019, also experienced a stunning fall. As he orchestrated a series of bailouts for struggling crypto firms earlier this year, Bankman-Fried, also known as SBF to insiders, frequently drew comparisons to investing legends like Warren Buffett and J.P. Morgan. He has appeared in commercials alongside famous people like Gisele Bündchen as part of an effort to popularise cryptocurrency.

Without a rescue plan, Bankman-Fried's crypto empire, including FTX, could possibly implode. The deal's collapse raises concerns about the customers' finances and casts doubt on the future of one of the biggest crypto trading platforms. Additionally, it signals a continuation of the industry's long-term turmoil.

The biggest cryptocurrency, bitcoin, fell 15% on Wednesday, adding to a recent decline that started on Tuesday after FTX announced that it could not handle a surge in withdrawal requests and was looking to the Binance deal as a lifeline. The token's price on Wednesday evening briefly fell to $15,600, its lowest since November 2020.