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Tuesday, July 16, 2024

TSM sponsor FTX in trouble after Binance acquisition fails

Amidst the turmoil in the cryptocurrency space, TSM sponsor FTX finds themselves hanging in mid-air after prominent crypto exchange Binance announced that they would pull the acquisition deal in place after internal discrepancies among the FTX ranks arose.

Two days ago, on November 8th, Binance founder Changpeng Zhao announced that he would be acquiring FTX in its entirety which would see two majors players of the crypto exchange market join forces; however, in light of recent findings, Binance was forced to pull the deal, leaving FTX in significant trouble.

Shortly afterward, Binance announced that the deal would be pulled after news about FTX surrounding mishandled customer funds surfaced. Given that Binance could pull out of the agreement after financial due diligence, they wasted no time and announced their decision.

“In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance added to their official statement.

FTX “has been scrambling to meet a surge of withdrawal requests,” according to The New York Times.

Before the meltdown, FTX acquired rights and sponsorships for several of the top esports organization, namely TSM, whose naming rights were obtained for a reported $210 Million for ten years, along with Furia, who also struck deals of a significant amount.

Following the deal falling through, several reports suggest that FTX will have trouble fulfilling the financial commitments. As a result, the said esports teams might be in a situation where a big chunk of their operational finances may be jeopardized.

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