Binance pulls out of FTX deal after seeing books, reports of mismanagement of funds.

Binance is reportedly backing away from its plan to acquire FTX. The world’s largest crypto-currency exchange, which announced as recently as Tuesday that it would acquire the rival, is reportedly having second thoughts about the matter.

According to a tweet from DB News yesterday, Binance appears to be reconsidering its decision to buy Sam Bankman-Fried’s troubled exchange after seeing the state of the company’s finances.

[DB] Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: CoinDesk Source

– db (@tier10k) November 9, 2022

DB News confirmed the report this afternoon, sharing on Twitter that the Wall Street Journal had obtained confirmation that Binance would exit after due diligence efforts and reports that FTX had mishandled user funds.

News of the acquisition, which seemed to confirm rumors of financial difficulties at FTX and its affiliate, Alameda Research, sent the markets tumbling yesterday. FTX’s native token, FTT, lost nearly 80 percent of its value yesterday, causing contagion across the markets – bitcoin fell below its summer 2022 low and is currently trading at $17,182. ETH, meanwhile, is trading at $1,172.

Binance’s withdrawal from its deal could spell the end of FTX. Blockworks previously reported that Binance had tried to force the acquisition of FTX.US into the package as well. However, it also emerged that US regulators are investigating FTX’s management of customer funds, which may have influenced the decision.