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Breaking: Binance announces FTX takeover

Binance

TL;DR Breakdown

  • Binance reveals plans to acquire FTX
  • FTX boss says the move will protect its users
  • Binance will help FTX clear backlog issues

In what appears to be a final stop to the rumours making the rounds, Binance CEO CZ has mentioned that his company has reached a non-binding deal to fully acquire FTX. In a Twitter post that was posted some hours ago, Binance boss CZ said that FTX called on the company for help due to the slight liquidity issues that the company is battling. According to CZ’s post, Binance has signed a Letter of Intent which means the company, barring any last-minute hitch, will take over the platform.

FTX boss says the acquisition will protect users

The statement also said that the move was made to help FTX protect its users against the issues ravaging the platform. Binance is going to conduct its due diligence in the next few days to ascertain the state of the platform. The Binance boss also mentioned that his company has the right to pull out of the deal whenever it deems fit.

In his Twitter update, FTX boss Sam Bankman-Fried said that his company was faced with liquidity-based issues. His statement claimed that this issue and some others forced the company to agree with Binance. However, he said the in-house experts are still working hard to clear withdrawal and liquidity issues that have been pending over the last few days.

Binance to lend a hand to clear the backlog

The SBF statement on Twitter also mentioned that the company will try to cover all assets on its platform on a 1:1 as it is one of the reasons why Binance is stepping into the situation. Meanwhile, both statements highlighted the need for this acquisition to happen as it will protect the users from issues emanating from the FTX brouhaha. SBF also said that the move would benefit the crypto community as it focuses on its users. This recent acquisition is coming off the back of a recent back-and-forth between the CEO of both crypto platforms.

The issue started after a leaked document that impacted the price of FTT was released. After the revelation, CZ stated that Binance was going to liquidate all the FTT tokens in its confines. However, the liquidation came with issues as the price of the tokens dropped drastically prompting a statement from the CEO of Alameda research. A while later, SBF chose to step into the issue by asking CZ not to start a war but instead share love, a statement that infuriated CZ. Zhao claimed that his company was just trying to get ahead of the situation to avert the issue that occurred with LUNA.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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