FTX Agrees to Sell Itself to Rival Binance Amid Liquidity Scare

CDCROP: CEO of FTX Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee (Alex Wong/Getty Images)

Binance agreed to buy rival cryptocurrency exchange FTX, a stunning outcome that followed days of speculation – spurred by a CoinDesk article on Nov. 2 – that FTX and corporate sibling Alameda Research faced a liquidity crisis.

We have come to an agreement on a strategic transaction with Binance for (pending DD etc.)

Binance CEO Changpeng “CZ” Zhao also took to Twitter to confirm the deal, saying the two exchanges signed a non-binding letter of intent. Bankman-Fried and Zhao both said that a full due diligence process would be underway in the next couple of days.

Investors had withdrawn significant money from FTX, withdrawing bitcoin (BTC) en masse over the last 24 hours, cutting the balance there from about 20,000 bitcoins to just one on Tuesday morning, according to data from Coinglass.

On the news, FTX’s FTT token rallied 20% to $17.50 from about $14.50. Binance’s BNB token jumped 8% from $326 to $355. The price of bitcoin also pared its losses after the takeover was announced.”

See Also: FTX’s Bitcoin Balance Plunges to Just One
See Also: FTX Token Plummets on Withdrawal Concerns, as Contagion Hits Broader Crypto Markets
See Also: BitDAO Community Asks Alameda for Proof of Funds After BIT’s Sudden 20% Drop
See Also: Abracadabra’s MIM Stablecoin Briefly Lost Dollar Peg as FTX’s FTT Token Tanked