The world’s biggest cryptocurrency exchange, Binance has rejected a bailout deal with rival company FTX.
After a due diligence Binance decided not to go ahead with the deal as it found irregularities in customer funds.
FTX had run into liquidity problems due to a large increase in withdrawals.
According to Reuters news agency FTX was under investigation by US Securities and Exchange Commission (SEC) due to management of customer funds and its crypto-lending activities. The SEC were analysing whether FTX was following security laws.
After the deal fell through, Bitcoin fell under $16,000 and shares in Coinbase fell by more than 9.5%, which has led to chaos in cryptomarkets.