FTX may be bankrupt as Binance pulls out

InfoNesia.xyz – FTX is on the verge of bankruptcy as liquidity crunch sends the Crypto exchange out of business.

Binance Balks at Buyout Deal

On Tuesday, Binance said it had signed a non-binding letter of intent to purchase FTX.com amid a liquidity crisis. Today, however, Binance declared it would not follow through with the dealing, citing the extent of FTX’s financial problems.

Binance, in a statement this afternoon, said; “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,”

Cryptocurrency exchange FTX may be forced to declare bankruptcy if it does not receive an infusion of fresh capital, founder and CEO Sam Bankman-Fried reportedly told investors on Wednesday.

That’s according to a report from Bloomberg, citing an unnamed source who was privy to the conversation. Bankman-Fried reportedly told investors that FTX is short as much as $8 billion following a liquidity crisis. The Wall Street Journal cited the same figure, noting that FTX needs a cash infusion to cover customer withdrawal requests.