Binance refuses FTX acquisition, Bankman-Fried hints at insolvency

Binance announces it won’t be acquiring FTX exchange, according to the WSJ report. The massive FTT token results in FTX bankruptcy, and Bankman-Fried says he needs $8 billion to save it.

In the span of two days, the world’s largest cryptocurrency exchange, FTX by billionaire Sam Bankman-Fried goes into default and is currently under investigation by the US Department of Justice.

FTX has been leading the crypto scene for many years and it was a direct competitor of Binance. It had listed many coins and increasingly daily active users.

Bankman-Fried had claimed he had enough funds to buy out bankrupt firms but now his own company is going bankrupt. In fact, the billionaire’s net worth dropped 93% to $991M.

According to Bloomberg, FTX is now short $4 billion to remain operational. Now, the exchange halted its withdrawals and  Bankman-Fried has admitted to filing for bankruptcy.

Seeing how the situation is unfolding, FTX’s legal team has left and most employees are expected to be laid off once the investigation by the US authorities begins.

In effect to this, the whole crypto market is in turmoil as Bitcoin drops to an all-time low of $15k since November 2020 while the Solana ecosystem is facing a crisis because of Alameda.

The NFT market isn’t doing so well. The marketplaces are seeing much panic among the collectors because the worth of each collectible has dropped drastically in two days.

Compared to that, Binance is facing a loss in BNB prices because of the whole market situation but it still remains a strong exchange in the crypto space.



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