Bitvo Exits Acquisition Talks with FTX, Remains Independent Amidst Crypto Turbulence

Bitvo Stands Strong

In a bold move, Canadian cryptocurrency exchange Bitvo has officially called off its anticipated acquisition by FTX, a deal that had many in the crypto community raising their eyebrows. On November 15, Bitvo announced that its shareholder, Pateno Payments, decided to terminate the acquisition agreement with FTX Canada and FTX Trading, citing the terms laid out in their initial agreement.

No Worries for Bitvo Users

The company made it clear that it’s business as usual at Bitvo, with no material exposure to FTX or any related entities. This means that the platforms’ trading operations, along with deposits and withdrawals, are running smoothly. In fact, Bitvo proudly declared,

“We have never owned, listed, or traded FTX Token (FTT) or anything similar,”

reassuring customers about the integrity of their funds.

The Independence Factor

Bitvo’s announcement sheds light on its steadfast commitment to operating independently. This crypto platform does not engage in risky lending activities; instead, it operates on a full reserve basis. In simpler terms, they don’t play fast and loose with customer funds. As stated by the company,

“Bitvo has always chosen to operate in this fashion, and it is a requirement of Bitvo’s regulatory status as a Restricted Dealer registered with the Canadian Securities Administrators.”

The FTX Fallout

FTX’s spectacular downfall has sent shockwaves throughout the crypto landscape, affecting numerous exchanges and crypto firms. Bitvo, however, seems to have dodged a major bullet. While the acquisition was initially seen as part of FTX’s ambitious expansion into Canada, the situation soured dramatically as FTX became embroiled in scandal following allegations of the misappropriation of user funds for trades on its sister company, Alameda Research.

Looking Ahead

Bitvo’s CEO, Pamela Draper, expressed relief that the acquisition deal didn’t go through, stating it would have been devastating for both employees and customers. She noted,

“The acquisition didn’t close, which we are very happy about.”

Regulatory approval was a significant hurdle that both entities had been trying to navigate, but ultimately, it seems fate had something else in store. Meanwhile, companies connected with FTX, like Liquid and Voyager Digital, are still feeling the repercussions of FTX’s chaos as they struggle to regain footing in this tumultuous crypto environment.