Binance cancels acquisition of FTX! FTX faces an $8 billion funding gap and may apply for bankruptcy.

Binance announced this morning on Twitter that, due to the company's due diligence and recent news reports about FTX manipulating customer funds and being investigated by U.S. authorities, Binance has decided not to pursue the acquisition of FTX.

$80 Billion Funding Gap Black Hole

According to a report by Bloomberg, FTX is currently facing a staggering $80 billion funding gap. Sources familiar with the matter indicate that SBF is seeking to raise $40 billion in rescue funds through debt, equity, or a combination of both to maintain solvency. It has been suggested that without a cash injection, FTX may need to file for bankruptcy.

If FTX ultimately declares bankruptcy, several prominent investment firms could potentially face substantial losses, including SoftBank Group, Sequoia Capital, hedge fund Third Point, and private equity firm Thoma Bravo.

Additionally, a report by Semafor indicates that the majority of FTX's legal and compliance personnel resigned on Tuesday night, leaving almost no senior executives available to address company inquiries.