Cryptocurrency exchange Binance is likely to walk away from a deal to buy embattled rival FTX, the Wall Street Journal reported on Wednesday, citing a person familiar with the matter.

Binance was taken aback by "a big hole it found in FTX's finances", the report said.

Binance and FTX did not immediately respond to Reuters requests for comment.

Binance signed a nonbinding agreement on Tuesday to buy FTX's non-U.S. unit to help cover a "liquidity crunch" at the rival exchange, in a stunning bailout that raised fresh concerns among investors about cryptocurrencies.

  - Reuters