Binance to acquire rival FTX

Two days after announcing the sale of its entire portfolio of FTT tokens of cryptocurrency exchange FTX, Binance CEO Changpeng Zhao (CZ) on November 8 said it was planning to fully acquire FTX and has signed a non-binding letter of intent.

Due diligence for the same will be conducted in the coming days.

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 https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

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— CZ Binance (@cz_binance) November 8, 2022

"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," FTX founder and CEO Samuel Bankman-Fried (SBF) said in a series of tweets.

"But the important thing is that customers are protected," he added.

Here's the tweet thread from SBF on what lies ahead :

1) Hey all: I have a few announcements to make.

Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).

— SBF (@SBF_FTX) November 8, 2022