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Prices of other digital coins also fell after Binance abandoned his FTX purchase citing due diligence concerns.

FTX customers were unable to withdraw from exchanges used to buy and sell various digital tokens.

There are also concerns that if FTX fails, the crypto market will become even more volatile.

On Thursday, Bitcoin fell below $16,000 (£14,049) for the first time since 2020. This is because investor confidence has been hit by the news.

Ethereum, another popular digital coin, also crashed before it could bounce back.

FTX’s financial health concerns have reportedly caused him to withdraw $6 billion (£5.2 billion) in just three days.

“I thought FTX was safe,” a customer told the BBC.

“I have about $3,000 (£2,630) worth of coins in my crypto wallet, but more worryingly, I have invested $33,000 (£28,900) for my mother and stepfather through the app.

Binance said reports of “mishandling of customer funds and alleged investigation by US authorities” impacted its decision not to buy FTX. said to have given

Reuters reported that the US Securities and Exchange Commission (SEC) is investigating FTX’s handling of customer funds and its cryptocurrency lending activities.

Market regulators are also investigating whether the platform violates securities laws regarding the use of client funds.

Binance said in a statement posted on his Twitter that the issues facing FTX are “out of our control or ability to help.”

“When major players in the industry go bankrupt, retail customers suffer. We have seen the cryptocurrency ecosystem become more resilient over the past few years, but over time, users’ funds have become more resilient. We believe that outliers who exploit

regulatory frameworks have been developed and the industry continues to evolve towards greater decentralization. ”

FTX founder Sam Bankman-Fried and Binance CEO Changpeng “CZ” Zhao are some of the most powerful and high-profile rivals in the cryptocurrency market.

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