$ 1 Binance FTX deal is deactivated unless ftx.us is part of the package: source

$ 1 Binance FTX deal is deactivated unless ftx.us is part of the package: source

Binance will not continue the proposed deal to take over FTX, unless the exchange partner ftx.

According to the source, the fact that the Federal Trade Commission and the Commodity Futures Trading Commission have initiated investigations into FTX this morning that Binance will not consider a deal for the independent business of FTX. The price of the deal was originally $ 1, according to the materials that block works have seen, but "nobody will want to buy billions of dollars of messy debts for $ 1".

Legal consultant of the deal fear, however, that the US supervisory authorities would block every sale of a US company to Binance, since Binance will pending its own investigations-including one in which the Ministry of Justice and the IRS are involved in an investigation against Binance in 2021 and another in which the CFTC reports whether resident in the USA Derivate trade.

Binance was asked by the Federal Prosecutor's Office to issue messages about Zhao in 2020, as they wanted to find out whether the exchange violated the Banking Secure Act.

and only last week, Reuters reported that Binance was worth trading in the value of almost $ 8 To enable Iran, possibly while violating US sanctions.

A second person with knowledge of the matter said: "100 %if you try to sell ftx.us The supervisory authorities will say that they run out."

Binance published an explanation shortly after the publication of this story:

"Due to the company's due diligence and the latest news about improperly treated customer funds and presumed investigations by the US authority, we have decided that we will not follow the potential takeover of ftx.com .

In the beginning, our hope was to be able to support the FTX customers in providing liquidity, but the problems are outside of our control or our ability.

Every time an important player fails in an industry, the retail customers will suffer. We have seen in recent years that the crypto ecosystem becomes more resistant, and we believe that outliers who abuse user funds are eliminated from the free market over time.

With the development of regulatory framework and the further development of the industry towards greater decentralization, the ecosystem will become stronger. ”

updated on November 9, 2022 at 3:59 p.m. ET with a statement by Binance.

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The post-$ 1-binance-fx deal is deactivated, unless ftx.us is part of the package: Source is not a financial advice.