In a longer post made Wednesday morning, Zhao added that “FTX going down is not good for anyone in the industry. Do not view it as a ‘win for us.’” Bankman-Fried also tweeted about the acquisition. “I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and time again that they are committed to a more decentralized global economy...We are in the best of hands,” he wrote.


Yet, apparently Binance’s brief peek into FTX’s finances was enough to stop the acquisition deal in its tracks, regardless of any negative reverberations FTX’s downfall could have for other crypto firms.

“Roughly half a day into that process of reviewing FTX’s internal data and loan commitments has led Binance to strongly lean against completing the transaction, [our source] said,” Coin Desk initially wrote—a sentiment confirmed by the company to Gizmodo.

Advertisement did respond to Gizmodo’s request for comment. Assuming the the rescue deal is now moot, FTX is set to become one of multiple blockchain projects to crumble in this year’s “crypto winter.” Unfortunately, it also means that Martin Shkreli was right about something.

Update 11/09/2022, 4:42 p.m. Eastern: This story has been updated with comment from Binance.


Update 11/09/2022, 4:05 p.m. Eastern: This story has been updated with additional information from a Wall Street Journal report.