Cryptocurrency prices dropped to two-year lows overnight after major cryptocurrency exchange Binance announced late Wednesday that it was pulling out of a proposed merger with ailing rival FTX, leaving the latter on the verge of collapse.
The failure of the cryptocurrency giant could have a ripple effect on the world of sports and entertainment. A number of companies and celebrities are reported to have hefty investments in the company, while FTX also has big-ticket sponsorship deals with the likes of the Miami Heat basketball team and the Formula One squad Mercedes-AMG Petronas F1.
Binance said in a statement that after doing due diligence it would not proceed with the deal, explaining that reports of “mishandled customer funds and alleged US agency investigations” had played a part in its decision.
News that Binance was walking away from the deal sent cryptocurrency values tumbling with benchmark cryptocurrency Bitcoin falling to a two-year low of $15.71 on Wednesday evening, against an all-time high of $64.86 in November 2021.
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