Breaking: Binance announces FTX takeover

Breaking: Binance announces FTX takeover

In what appears to be a final halt to the rumors circulating, Binance CEO CZ mentioned that his company had reached a non-binding agreement to acquire FTX fully. In a Twitter post published a few hours ago, Binance CEO CZ said that FTX had approached the company for help over the mild liquidity issues the company is facing. According to the CZ-Post, Binance has signed a letter of intent, which means barring last-minute issues, the company will take over the platform.

FTX boss says the acquisition will guard users

The statement also states that the step was taken to help FTX protect its users from issues plaguing the platform. Binance will conduct its due diligence to determine the platform’s status in the coming days. The Binance CEO also mentioned that his company has the right to withdraw from the deal at any time. In his Twitter update, FTX CEO Sam Bankman-Fried said his company faced liquidity issues. Their statement claimed that this issue and about others forced the company to join Binance.

He said, however, that internal experts are still working hard to resolve the payout and liquidity issues that have been pending for the past few days.

Binance to lend a hand to clear the accumulations

SBF’s statement on Twitter also mentioned that the company would seek to hedge all assets on its platform on a 1:1 basis, as this is one of the reasons Binance is entering the fray. Meanwhile, both statements emphasized the need for this acquisition as it will protect users from problems emanating from the FTX brouhaha. SBF added that the decision would assist the cryptocurrency industry since it puts its users first. This recent acquisition comes from a current between the CEOs of both crypto platforms.

The problem started after a leaked document was published that affected the price of FTT. After the disclosure, CZ stated that Binance would liquidate all FTT tokens on its borders. However, the liquidation was fraught with problems as the price of the tokens fell sharply, prompting a statement from Alameda’s research CEO. Sometime later, SBF decided to speak out on the issue by urging CZ not to start a war but to share love, a statement that angered CZ. Zhao claimed that his. The company was only trying to preempt the situation to avoid the problem that occurred with LUNA.

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