Rumors are brewing that Binance may not be coming to rescue FTX cryptocurrency exchange and its users. Poor books are to be blamed. This could be the black swan event in cryptocurrency space.
Nobody is going to take bills of liabilities as loan sharks are coming to collect their borrowed funds from FTX. Keep in mind, even if they could handle the financial liabilities if they really wanted to; the regulatory liabilities are far worse though and I do not see any chance of a deal happening.
Should we blame CZ from Binance? Nope, he had made it clear yesterday that Binance has the discretion to pull out from the deal at any time. Clearly, he did not like what he saw.
We really hope CZ can somehow find a way to make this deal to work for him as it will save a lot of peoples’ money and potentially the industry. Looks like things may have been even worse than we realized. The balance sheet looks to have bigger craters than the moon itself. Highly doubtful this goes through.
We will keep sharing updates as we get them.