Crypto update: Binance Makes Shocking Acquisition Plan for FTX


In response to FTX’s “severe liquidity shortage,” Binance has stated that it intends to purchase the exchange.

A non-binding letter of intent was signed on Tuesday, according to Changpeng Zhao, and complete due diligence will be completed in the following days.

Binance’s CEO cautioned that there is still a lot of uncertainty in a subsequent tweet, writing:

“There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.”

FTT has experienced significant volatility recently, dropping by 72.8% in the past day. Since the failure of LUNA and UST in May, there hasn’t been a drop this abrupt, sharp, and extreme.

Sam Bankman-Fried gave his own update and said that FTX “had come full circle” in reference to Binance’s early investment in his exchange.

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He emphasized that personnel from both exchanges are working to eliminate the backlog of withdrawals at FTX, and all assets would be covered one-to-one.

“This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. — we apologize for that. But the important thing is that customers are protected.”

SBF continued by expressing gratitude to CZ and Binance and calling the transaction “a user-centric development that benefits the entire industry.”

“CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.”

SBF continued by expressing gratitude to CZ and Binance and calling the transaction “a user-centric development that benefits the entire industry.”

“Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.”

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It’s important to stress that the proposed acquisition wouldn’t involve the American arms of either exchange — FTX.us and Binance.us.


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