According to the latest set of tweets by the CEOs of Binance and FTX, the two exchanges have reached an agreement whereby Binance will “fully acquire” FTX.
On November 6, Chanpeng Zhao, CEO of Binance, announced his plans to liquidate $529M worth of FTX Tokens (FTT). This roused the crypto community’s suspicions about FTX facing insolvency.
Now, Changpeng Zhao has announced that Binance signed a non-binding letter of intent (LOI) to buy FTX. Zhao noted that the deal will help cover FTX's liquidity crunch.
He also warned that $FTT’s prices may be “highly volatile” in the coming days, noting,
"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."
Zhao added that Binance has the option to terminate the deal at any time.
Sam Bankman also confirmed the deal in a separate set of tweets.
According to him, the “strategic transaction with Binance” will allow FTX to clear its withdrawal backlog. He also dismissed rumors of disputes between FTX and Binance, citing,
“Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators.”
Going forward, Binance will conduct due diligence over the coming days. The contents of the agreement are currently undisclosed.
