Binance agrees to buy FTX’s non-US unit in bailout

Global blockchain services provider Binance has signed a non-biding agreement to buy crypto exchange FTX’s non-US assets to help with its liquidity issues.

Binance CEO Changpeng Zhao announced this on Twitter on Tuesday, saying that the deal between the two crypto rivals aims to help cover FTX’s “liquidity crunch”.

He stated:

Changpeng Zhao, Binance

Changpeng Zhao
Source: LinkedIn

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 and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

The acquisition follows FTX’s issues with liquidity came to light and caused a pause in customer withdrawals in the three days leading up to Tuesday morning.

FTX CEO Sam Bankman-Fried had this to say on twitter:

Sam Bankman-Fried, FTX

Sam Bankman-Fried
Source: LinkedIn

Things have come full circle, and’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for (pending DD etc.).

Bankman-Fried highlighted that the important thing in the situation is that “customers are protected.”

The deal came after rising concerns over problems with FTX’s liquidity after crypto users  experienced issues with withdrawals on the platform.

This was then further ignited by Zhao who tweeted on Sunday that Binance would liquidate its holdings of rival’s FTX Tokens (FTT) “due to recent revelations that have come to light.”

Changpeng Zhao said:

As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.

The latest development is a reversal of the roles for FTX as the company has been rescuing other crypto companies.

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