After all the speculation surrounding the crypto exchanges Binance and FTX, Binance CEO Changpeng Zhao (CZ) revealed that his company is set to acquire FTX. CZ detailed that FTX asked for help and noted there is a “significant liquidity crunch.” FTX CEO Sam Bankman-Fried has confirmed the acquisition will take place.
Binance Set to Acquire FTX After Drawn Out Confusion
On Nov. 8, 2022, Binance CEO Changpeng Zhao (CZ) revealed that his company would be taking over FTX. “This afternoon, FTX asked for our help,” CZ wrote. “There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire [FTX] and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”
The acquisition news follows CZ explaining earlier this week his exchange would be dumping its FTT holdings. A significant amount of speculation followed and the crypto community began to monitor FTX-associated crypto addresses. Following CZ’s announcement on Tuesday, Bankman-Fried confirmed that Binance would be taking over the company. The FTX CEO said:
Things have come full circle, and [FTX’s] first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for [FTX] (pending DD etc.).
Bankman-Fried added that FTX and Binance teams were working on clearing a backlog of withdrawals. “This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. — we apologize for that,” Bankman-Fried detailed.
What do you think about Binance acquiring FTX after the last few days of speculation? Let us know what you think about this subject in the comments section below.
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