After all the talk about Binance and FTX, the CEO of Binance, Changpeng Zhao (CZ), said that his company is going to purchase the company of FTX. CZ explained that FTX reached out in search for help and said there is a “significant liquidity crunch.”
Sam Bankman-Fried, the CEO of FTX, has confirmed that the acquisition is underway and will happen. The CEO of Binance, Changpeng Zhao (CZ), said that his company would be taking over FTX on November 8, 2022. “This afternoon, FTX asked for our help. There is a significant liquidity crunch,” CZ wrote.
The news of the purchase comes next. CZ said earlier this week that his exchange was going to sell its FTT holdings. After that, there was a lot of speculation, and people in the crypto community started keeping an eye on crypto addresses connected to FTX.
After CZ’s announcement on Tuesday, Bankman-Fried confirmed that Binance would be taking over the company.
Bankman-Fried also said that teams from FTX and Binance were working to get caught up on withdrawals. “This will clear out liquidity crunches; all assets will be covered 1:1.
This is one of the main reasons we have asked Binance to come in. It may take a bit to settle etc. — we apologize for that,” Bankman-Fried said.
There has been an extreme amount of craziness and volatility within the last 24 hours. If there is a TLDR that could really sum things up, it would be this one image:
As if things couldn’t get any crazier, there was a recent update to the FTX saga…
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of http://FTX.com.@binance on Twitter – 11/09/22
It seems as if the new acquisition has fallen through after news about mismanagement of customer funds by FTX. There will most certainly be fallout in the following months. Make sure to keep your eye out and be careful as you move forward.
Check out our other news articles here.