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New York
CNN business
In an unexpected twist, cryptocurrency exchange Binance has announced it will acquire rival FTX after the company faced a liquidity crisis.
This afternoon FTX asked for our help, Zhao CZ Changpeng tweeted on Tuesday. signed the letter [letter of intent] We intend to fully acquire http://FTX.com and cover the liquidity crisis.
The deal comes after a public clash between the heads of both companies that sparked a widespread sell-off of the cryptocurrency early on Tuesday.
FTX founder Sam Bankman-Fried is one of the most influential figures in the cryptocurrency industry, and as the price of cryptocurrencies fell, he took about 10 dollars to help struggling crypto companies. We invested 100 million dollars and became something of a one-man bank this summer.
But on Tuesday, the tables turned when Bankman-Fried’s company faced a scramble for its internal token, the FTT.
“I’m actually shocked by this,” an industry executive told CNN Business. “FTX’s failure is the kind of event in the field by Lehman Brothers. But if they are bailed out, perhaps things will turn around in the pass.”
Binance and FTX did not immediately disclose the details of the transaction, but both said they were aware of it in real time.
There is a lot to cover and it will take time, Zhao tweeted. This is a very dynamic situation and Binance has the discretion to withdraw trades at any time.
Pressure on FTX began to build over the weekend when Binance head Zhao said his company would sell all of its assets held in FTT (around $580 million).
“By a recent revelation, [come] Clearly, we have decided to liquidate the remaining FTT on our books. he tweeted
This story is a work in progress and will be updated.
