Earthquake in crypto: Binance to buy FTX!

Binance has signed a non-binding letter of intent to acquire FTX, the two companies announced, in a surprising twist to the public feud between the world’s two largest crypto-currency exchanges that contributed to several tokens falling on Tuesday. The companies did not disclose the value of the deal, pending the due diligence process.

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 https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

– CZ 🔶 Binance (@cz_binance) November 8, 2022

In a series of tweets, Binance founder and CEO Changpeng Zhao said Binance made the decision after FTX contacted the company asking for help. “To protect users, we have signed a non-binding LOI, with the intention of fully acquiring FTX and helping to cover the cash shortage. We will proceed with a full DD in the next few days“, he said.

Binance, the world’s largest stock exchange, was the first investor to back FTX, but as the startup gained popularity, the relationship between the two companies began to wane. The two executives have been critical of each other for several months, but the relationship between the two hit an all-time low earlier this week after Zhao revealed that Binance was selling its stake in FTT, the native FTX token it received as part of an exit from the company last year.

In a tweet, Sam Bankman-Fried (pictured above) said, “A *huge* thank you to CZ, Binance, and all our supporters. This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, incredible work to build the global crypto ecosystem, and create a freer economic world.“

More information to come…