By
Chimamanda U. Martha
April 19th, 2024
Justin Sun did not state any details about the solution he is working on with FTX.
The founder of the Tron crypto network Justin Sun said that he is working together with distressed crypto exchange FTX to find a way out of the current situation. In a tweet, he announced that his team is “putting together a solution together with FTX to initiate a pathway forward.”
Justin Sun, also BitTorrent CEO, made the revelation about assisting FTX after Binance announced that it would not be moving forward with the acquisition deal. Before now, Changpeng Zhao and FTX CEO Sam Bankman-Fried confirmed that Binance would be acquiring the troubled exchange. CZ said his firm had signed a “non-binding LoI” to fully take over FTX. At the time, the crypto enthusiast also added that it has the decision to “pull out from the deal” at will. The CEOs also said both teams would conduct due diligence before the completion of the deal.
A Binance spokesperson said Binance had withdrawn its letter of intent to purchase FTX.
“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 FTX.com.”
Justin Sun Is ‘Putting Together a Solution’ with Distressed FTX
Binance initially hoped to support FTX with the buyout. However, the company said the issues are beyond its control and capacity. According to the representative, the crypto industry will continue to grow, especially with the help of regulatory frameworks. FTX’s native crypto FTT, which was collapsing, rebounded on news that Binance was taking over. However, the cryptocurrency has dipped about 32% to $2.41 in reaction to the news that the top crypto exchange was pulling out of the deal.
In addition to his announcement on working on a solution with FTX, Justin Sun said in a different tweet that the liquidity crunch is harmful to the industry’s development. Despite being short-term in nature, he mentioned that the ongoing matter also affects investors. He continued:
“My team has been working around the clock to avert further deterioration. I have faith that the situation is manageable following the wholistic approach together with our partners.”
Justin Sun did not state further details about the solution he is working on with FTX. Meanwhile, SBF retweeted the tweets, indicating that the two parties are indeed “putting together a solution.”
Different regulatory agencies are now investigating or broadening investigations into FTX following its apparent collapse. They include the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Commodity Futures Trading Commission (CFTC). According to WSJ and Blomberg, the regulatory bodies want to look into the exchange, how it handles clients’ funds and more.