Binance fully buys out the FTX exchange

The exchanges have concluded a strategic deal

08.11.2022 - 16:45

2 min

What’s new? Changpeng Zhao, CEO of cryptocurrency exchange Binance, has announced that his company intends to acquire the FTX exchange, which has faced liquidity problems and the collapse of its native token FTT. FTX founder Sam Bankman-Fried also described the agreement in a series of tweets, acknowledging issues with withdrawals and a lack of assets.

Source: Twitter.com

What did the parties agree on? Zhao wrote that representatives of FTX asked Binance for help. As a result, the companies came to an agreement to sell FTX. Reportedly, prior to the strategic deal with Binance, FTX was looking for other sources of capital and intended to raise between $10 billion and $20 billion.

In turn, Bankman-Fried assured that through cooperation with Binance, all user assets will be covered at a ratio of 1:1, but it will take time. He also stressed that the deal does not affect the US arms of both exchanges, FTX US and Binance.US. They will remain separate companies, FTX in the States works as usual.

Source: Twitter.com

Dates and other terms of the deal were not specified. Zhao noted that the parties had to act in a fast-moving environment, so the purchase decision has not yet been finalized.

How did the market react? The announcement of the agreement led to immediate growth of the entire crypto market, BTC returned to values above $20 000, Binance Coin (BNB) token increased by 20% in an hour, and the native token of the FTX (FTT) exchange by 25%.

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