Per CoinDesk:

Binance is unlikely to complete its proposed takeover of FTX after reviewing the cryptocurrency exchange's internal data and loan commitments, CoinDesk reported Wednesday. The companies have not yet publicly commented on the latest reports. Meanwhile, FTX is facing a regulatory probe over its handling of client funds and lending practices, according to Bloomberg.

Binance signed a nonbinding letter of intent to buy FTX's non-U.S. operations on Tuesday, in an effort to solve FTX's liquidity crunch. Cryptocurrency prices tumbled over concerns of FTX's financial health and potential insolvency of the fourth largest crypto exchange.

Users rushed to withdraw their funds from FTX. They withdrew more than $1.2 billion from the exchange Monday. Bitcoin prices dived below $20,000 for the first time since late October, and cryptocurrencies generally shifted lower early Tuesday.