The cryptocurrency exchange Binance has pulled out of a deal to save its rival FTX, a blow to investors who had hoped that the agreement would help them retrieve funds after FTX collapsed this week.
Binance said in a statement on Wednesday afternoon that “as a result of corporate due diligence,” it was pulling out of the deal.
“Every time a major player in an industry fails, retail consumers will suffer,” Binance said in its statement. “We have seen over the last several years that the crypto ecosystem is becoming more resilient, and we believe in time that outliers that misuse user funds will be weeded out by the free market.”
This is a developing story. Check back for updates.