Binance plans to buy FTX in apparent crypto bailout
The cryptocurrency exchange Binance said it plans to buy its rival FTX Trading, in what appears to be a bailout of FTX
NEW YORK (AP) — The cryptocurrency exchange Binance said it plans to buy its rival FTX Trading, in what appears to be a bailout of FTX.
The owners of the two exchanges — Samuel Bankman-Fried of FTX and Changpeng Zhao of Binance — announced the deal on Twitter, but did not disclose any details. The deal was pending due diligence, Zhao said on Twitter.
“This afternoon, FTX asked for our help. There is a significant liquidity crunch,” Zhao said on Twitter. “To protect users, we signed a non-binding (letter of intent), intending to fully acquire FTX and help cover the liquidity crunch.”
The deal would make Binance, which is already the biggest cryptocurrency exchange by daily volume, an even more dominant player in the cryptocurrency industry. FTX was the third largest exchange as of this week.
