Tuesday, February 27, 2024
HomeNewsBinance plans to buy FTX in apparent crypto bailout

Binance plans to buy FTX in apparent crypto bailout

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Binance CEO Changpeng Zhao (CZ) on Tuesday said it has signed a non-binding letter of intent, planning to fully acquire FTX.

This comes two day after announcing the sale of ts entire portfolio of FTT tokens of cryptocurrency exchange FTX.

Binance will conduct its due diligence of the deal in the coming days.

Samuel Bankman-Fried of FTX and Changpeng Zhao of Binance announced the deal on Twitter, but did not disclose any details.

“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 http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days,” tweeted Changpeng Zhao, Binance, CEO.

“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,” he further added.

The deal would make Binance, which is already the biggest cryptocurrency exchange by daily volume, an even more dominant player in the cryptocurrency industry. FTX was the third largest exchange as of this week.

FTX is the latest cryptocurrency company this year to come under financial pressure as crypto assets like Bitcoin and Ethereum have collapsed in value. Binance said this weekend it planned to sell a portion of FTX’s own cryptocurrency on concerns that the company was illiquid.

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