Today, a deal between FTX and Binance has been announced by Sam Bankman-Fried and Changpeng Zhao, who wrote on Twitter that Binance has signed a non-binding letter of intent to fully acquire FTX.com. CZ, the chief executive of Binance, wrote that the deal will be subject to due diligence stage in the coming days and noted that:
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.
The deal has also been confirmed by the chief executive and founder of FTX, Sam Bankman-Fried, who wrote that FTX and Binance have reached an agreement on a strategic transaction. SBF commented that one of the main reasons behind the deal is to address a liquidity crunch which arose suddenly and assist in clearing out a backlog of withdrawals. SBF wrote on Twitter that:
This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.
Bankman-Fried has addressed the rumours that FTX and Binance have been in conflict noting that:
Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.
The news has sent shockwaves through the crypto industry and is expected to continue to cause waves while further details emerge of what this bailout deal looks like.