Binance said on Tuesday that it is acquiring its rival FTX crypto exchange firm and this announcement immediately sent shockwaves within the crypto sector. The deal would have saved the latter from complete ruin, but it was reported on the following day, Nov. 9, that Binance is backing out.

CNN Business reported that Binance is buying its smaller rival company after FTX faced a liquidity crisis that triggered fears in the world of cryptocurrency and digital assets. This is because the deal is between two of the largest crypto exchanges based on volume.

Investors thought that this might result in a big shift in the industry, so they were left feeling anxious about the acquisition. It was Binance’s own co-founder and chief executive officer, Zhao “CZ” Changpeng, who shared the news with the public on Tuesday via social media.

“This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch,” the CEO tweeted. “We will be conducting a full DD in the coming days.”

On that same day, Bitcoin dropped more than 10% and hit a 52-week low of about $17,600. FTX’s token, the FTT, also collapsed when it lost 85% of its value. Coinbase and other digital assets and equities in the business also fell.

Many were shocked by the situation since FTX is one of the leading crypto firms out there. An executive in the industry told CNN Business, “I am actually shocked by this. FTX failing would be kind of like a Lehman Brothers event for the space but if they have been successfully bailed out, then that would probably head things off at the pass.”

Then again, after the due diligence checking before the acquisition deal could proceed, Binance made the decision to walk away. The company said it will no longer pursue the potential acquisition of FTX “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations.”

Binance further said that In the beginning, it was hoping to provide support to FTX’s customers by providing liquidity, however, due to the issues it has uncovered in the process of the DD, the company realized the problems are beyond its control. It also said that with FTX’s current circumstances, its ability to help is also far off.

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