, Binance announced that it had decided to walk away from the deal with FTX as the result of corporate due diligence.
After suffering substantial losses, Alameda Research, a trading firm controlled by FTX boss Sam Bankman-Fried, suffered substantial losses. According to a recent report by Reuters, Bankman-Fried attempted to save the firm by transferring $4 billion without revealing this information to other executives. A portion of the aforementioned sum included customer deposits.
Bankman-Fried reportedly told investors that the exchange had an $8 billion hole, and it is now facing bankruptcy. The FTX exchange is reportedly being investigated by the U.S. Securities and Exchange Commission as well as the Commodity Futures Trading Commission and the Department of Justice.