Binance Triggers Liquidity Crisis, Then Acquires Bankman-Fried’s FTX

Sam Bankman-Fried’s Twitter account has posted a thread claiming that Binance has agreed a deal to buy FTX, the exchange that he had built into a global crypto titan.

The native token of Sam Bankman-Fried’s cryptocurrency exchange FTT is soaring following disclosure of the alleged impending Binance buyout, and has recovered from a low of $14.57 to over $19 at the time of writing — a 36% recovery.

Binance founder Changpeng Zhao also tweeted about the deal, noting that:“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 FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

Bitcoin and ether are both recovering fast since a precipitous drop on Saturday night — when Zhao declared Binance would soon dump hundreds of millions of dollars in FTX’s native token FTT in response to rumors of Alameda Research’s insolvency.

This is a developing story and will be updated.


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  • Casey Wagner

    Blockworks

    Senior Reporter

    Casey Wagner is a New York-based business journalist covering regulation, legislation, digital asset investment firms, market structure, central banks and governments, and CBDCs. Prior to joining Blockworks, she reported on markets at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies.

    Contact Casey via email at [email protected]

Source: https://blockworks.co/binance-triggers-liquidity-crisis-then-acquires-bankman-frieds-ftx-crypto-exchange/