Binance will not go ahead with the proposed deal to acquire FTX unless the US-based exchange partner FTX. US is part of the deal, according to a source with knowledge of the matter and text conversations reviewed by Blockworks.

According to the source, the fact that the Federal Trade Commission and Commodity Futures Trading Commission have opened investigations into FTX this morning means that Binance will not consider a deal for FTX’s standalone operations. The price of the deal was originally $1, according to materials seen by Blockworks, but “no one is gonna want to buy billions of dollars of messy debt for $1”.