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FTX Deal To Buy Canadian Crypto Exchange Terminated In Wake Of Bankruptcy

Benzinga · 11/15/2022 23:37

Canadian cryptocurrency exchange Bitvo said on Tuesday it has terminated its deal to be acquired by the collapsed rival FTX (CRYPTO: FTT).

What Happened: A week after FTX filed bankruptcy, Bitvo said that “in light of recent events” its shareholder, Pateno Payments Inc., terminated its agreement with FTX Canada Inc. and FTX Trading Ltd.

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Bitvo announced the deal to be acquired by FTX earlier this year. In a press release, Bitvo said “it is not party to the bankruptcy proceedings entered into by FTX” and “has never owned, listed or traded FTX Token (“FTT”) or any similar token.”

The company said that its operations are expected to continue unaffected, with trading operations as well as withdrawals and deposits continuing as usual. 

“Bitvo operates on a full reserve basis, meaning it does not lend customer funds. Bitvo has always chosen to operate in this fashion,” the Canadian exchange added.

Bitvo said last week that customer funds are secure on its platform and trading operations, as well as withdrawals and deposits, are operating as normal.

Price Action: FTT is trading at $1.76 up 18.32% in the past 24 hours, according to Benzinga Pro.

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