Last Updated on 43 mins by cryptoevent

Binance CEO Changpeng “CZ” Zhao tweeted that crypto exchange FTX had reached out to Binance for help. In response to the request, CZ noted that Binance had signed a letter of intent to acquire FTX to help with the liquidity issues. The situation will be assessed as a non-binding letter and will be subjected to a full due diligence check in the next few days.

This afternoon FTX asked for our help. There is a significant liquidity crisis. To protect users, we have signed a non-binding LOI intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crisis. We will be doing a full DD in the coming days.

— CZ Binance (@cz_binance) November 8, 2022

Following the announcement, FTX CEO Sam Bankman-Fried also made an announcement on Twitter regarding the intent. His Twitter thread notes that this move “is a user-centric development that benefits the entire industry.”

1) Hi everyone: I have some announcements to make.

Coming full circle and the first and last investors of https://t.co/DWPootRHcX are the same: we have agreed on a strategic transaction with Binance for https://t.co/DWPootRHcX (pending). DD etc.).

— SBF (@SBF_FTX) November 8, 2022

He continued to squash rumors of a potential conflict between the two companies, stating:

“I know there have been rumors in the media about conflicts between our two exchanges, but Binance has consistently demonstrated their commitment to a more decentralized global economy while working to improve industry relationships with regulators. We are in the best of hands.”

Bankman-Fried also urged that clients are protected despite any liquidity issues FTX is facing, as well as the potential takeover that could be on the cards. If this agreement goes ahead and the deal goes ahead with a full acquisition, it would represent one of the largest merged companies the crypto space has ever seen.

The post Binance Announces Intent to Acquire Crypto Exchange FTX first appeared on Coin Insider.

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