Binance-FTX deal fallout:  Bitcoin plunges below USD 16,000

Sam Bankman-Fried (SBF) led FTX was one of the top crypto exchanges, but it is now facing a severe liquidity crunch.

Published: 11th November 2022 09:47 AM  |   Last Updated: 11th November 2022 09:47 AM   |  A+A-

Bitcoins, cryptocurrency

Image used for representational purposes. (File Photo)

By Express News Service

BENGALURU: A day after agreeing to bail out troubled FTX, the largest crypto exchange Binance has walked away from the acquisition deal, resulting in Bitcoin plunging to the lowest level - below $16,000- in two years.

 “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of,” Binance said. The crypto exchange added that every time a major player in an industry fails, retail consumers will suffer. “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,” it said.

Sam Bankman-Fried (SBF) led FTX was one of the top crypto exchanges, but it is now facing a severe liquidity crunch. Crypto exchanges are now advising users to observe the market carefully as FTT, the token of FTX, crashed nearly 70%. FTX has kept its own token as collateral against its huge valuation which made anyone in power to fluctuate the currency at any given time, said Taaran Chanana, MD and co-founder of MemeChat.

Binance CEO Changpeng Zhao also tweeted saying never use a token you created as collateral and don’t borrow if you run a crypto business. “Don’t use capital efficiently. Have a large reserve,” he said.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp