Binance backs out of deal to buy FTX

Binance, the world's largest exchange by volume, said it would walk away from a deal with FTX.

On Tuesday, Binance signed a letter of intent to purchase FTX in what appeared to be a potential rescue of the ailing competitor. That plan fell apart just a few hours later.

The company backed out after looking at its books and structure. The issues are beyond our control or ability to help and our hope was to support FTX's customers.

As a result of due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided not to pursue the acquisition of FTX.

Retail consumers will suffer when a big player fails. The free market will weed out the outliers that misuse user funds in the near future.

The two companies did not respond to the requests for comment.

According to sources, FTX's loan commitments raised concerns among the top brass of the company. FTX going down is not good for anyone.

If new information arises, this may be changed.