Binance said in a tweet on Wednesday night, that it will not go through with its plan to buy FTX exchange.

“At first, we hoped we could help FTX’s customers by providing liquidity, but the problems are out of our hands and we can’t help,” Binance said.

The news makes small investors wonder if they’ll ever be able to get their funds held by FTX again.

Earlier this week, the exchange was facing extreme liquidity pressures. A CoinDesk article about FTX exchange, its native token FTT, and Alameda, a research and trading firm also owned by FTX boss Sam Bankman-Fried, may have caused the trouble.

The article pointed out some worrying connections between FTX, FTT, and Alameda. The news coverage got the attention of Changpeng Zhao, who is the CEO of Binance. Soon after, Zhao tweeted that his company would sell all FTT tokens it had.

SBF responded to CZ’s tweet by saying, in a tweet that has since been deleted, that FTX was fine and so were the company’s assets. Soon after, though, the deal between Binance and FTX became public, and SBF admitted that there was a “liquidity crunch.”

The bailout gave the industry a reason to be hopeful. But from the beginning, CZ made it clear that Binance could back out of the deal “at any time.” Notably, the company hadn’t done its due diligence yet by looking at FTX’s financial books to decide whether or not to go through with the acquisition.

After looking at FTX’s finances, Binance has decided not to buy FTX’s business operations outside of the United States. Binance also talked about recent news stories about how the U.S. is looking into FTX for mishandling customer funds and lending.

https://altcoin.ng/binance-walks-away-from-buying-ftx-exchange/