Digital Assets: Binance Agrees To Buy (Non-US) FTX After Bankman-Fried Reveals Liquidity Crunch

November 8, 2022 | Artificial Intelligence, News
https://dailyalts.com/wp-content/uploads/2022/11/cryptocurrency-g9f7b67eb6_640.jpg

Trouble started (read: run) after Binance tweeted intentions to sell its FTT holdings due to “recent revelations.”

Binance, the world’s largest crypto firm, has agreed to buy rival crypto exchange FTX, which is owned by billionaire Sam Bankman-Fried, for an undisclosed amount. Binance CEO Changpeng Zhao revealed in a tweet that FTX asked for Binance’s help in tackling a significant liquidity crunch, and therefore it “signed a non-binding LOI, intending to fully acquire http://FTX.com and help cover the liquidity crunch.” (CNBC)

The deal includes only the non-US businesses of FTX. FTX.us will therefore be outside its purview.

What sparked the crunch

Binance CEO Changpeng Zhao had tweeted over the weekend that Binance would liquidate its holdings of about $2.1 billion of FTT saying: “Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books.”

The statement started a rush to liquidate FTT as panicked investors rushed for the exits fearing for the solvency of both FTX and its sister concern Alameda Research.

FTX: Full circle

“Things have come full circle, and http://FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for http://FTX.com (pending DD etc.),” tweeted Sam Bankman-Fried this morning.

“Our teams are working on clearing out the withdrawal backlog as is. 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 added.

Related Story: Niches Of The Cryptocurrency Market Have “Real Crash Potential” (Bankman-Fried)

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/12/defense-attorney-g17da42d37_640.jpg
Digital Assets: Mike Novogratz Hits Out At Sam Bankman-Fried, Calls For His Prosecution
December 2, 2022     Digital Assets, News

Mike Novogratz, the billionaire CEO of Galaxy Digital (TSE: GLXY), was unequivocally critical about Sam Bankman-Fried’s virtual New York Times (NYT) Dealbook Summit interview. “I’m hoping that the authorities get…

https://dailyalts.com/wp-content/uploads/2022/12/Home_Hero.png
FinTech: Monzo To Turn Profitable In 2023, Says CEO
December 2, 2022     FinTech, News

“We will be profitable in the next financial year,” TS Anil said at the summit on Thursday, though Monzo reported pre-tax losses of £119mn for the 12 months to the…

https://dailyalts.com/wp-content/uploads/2022/12/binary-geafeafdd2_640.jpg
Artificial Intelligence: OpenAI Launches ChatGPT, A New Conversational AI System
December 2, 2022     Artificial Intelligence, News

OpenAI has unveiled ChatGPT, a new AI system that interacts in a conversational way. As part of a dialogue format, ChatGPT answers followup questions, admits its mistakes, challenges incorrect premises,…

https://dailyalts.com/wp-content/uploads/2022/12/MKV-product-hero.jpg
Artificial Intelligence: Monarch’s Electric, Driver-Optional, Smart Tractor Now In Commercial Production

Monarch Tractor has rolled out the first production model of the MK-V tractor that combines electrification, automation, and data analysis to help farmers reduce their carbon footprint, improve field safety,…