Bitcoin extends drop after Binance backs down from FTX rescue

Cryptocurrency exchange Binance has pulled out of its initial offer to acquire the non-U.S. business of troubled rival FTX, it said in a series of Twitter posts Wednesday. The move, which was widely expected , added to the already intense downward pressure in digital tokens. Bitcoin ( BTC-USD ), 13.5% , made new session lows after the news hit, retreating to $16.17K at around 4:10 p.m. ET. Ethereum ( ETH-USD ) plunged 13.1% to $1.16K. Binance dropped its letter of intent as a result of Sam Bankman-Fried's FTX came under regulatory scrutiny by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over its potential mishandling of client funds. "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 tweeted. Neither Binance nor FTX immediately responded to Seeking Alpha's request for comment. Earlier, Binance raised its emergency insurance fund to $1B to adjust to crypto volatility .