Binance to acquire FTX unit, says CEO Changpeng Zhao

By Daisy On Nov 8, 2022

Binance Chief Executive Changpeng Zhao said on Tuesday the company had signed a non-binding agreement to buy rival FTX’s unit, FTX.com, to help cover a “liquidity crunch” at the cryptocurrency exchange.

Zhao tweeted saying “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.”

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-… https://t.co/0zIC81u1WO

— CZ ???? Binance (@cz_binance) 1667923761000

Earlier in the day, Binance announced it was selling its FTX Tokens. FTT tanked more than 30 percent after that announcement.

The Binance CEO also said that the company has the discretion to pull out from the deal at any time.

He tweeted saying, “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.”

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There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situa… https://t.co/P3SFCM8Xz8

— CZ ???? Binance (@cz_binance) 1667923761000

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