March 22, 2023

Crypto white knight: Binance to rescue troubled rival FTX

Binance and rival FTX are expected to carry out a bailout deal to cover a “liquidity crunch” at the cryptocurrency exchange.

Cryptocurrency platform Binance has agreed to purchase its financially-troubled rival Binance chief Changpeng Zhao unveiled that the firm had inked a non-binding letter of intent (LOI) to fully acquire, which is suffering from significant liquidity woes. While the proposed deal has not specified its financial terms yet, Binance is expected to conduct full due diligence process to be completed in the next few days.

Sam Bankman-Fried, the founder and CEO of FTX, confirmed the acquisition, citing that Binance has become the first and last investor in FTX, and that it has come to an “agreement on a strategic transaction” with the firm.

More detailed information about the acquisition shall be published in the coming days.