Following Binance CEO Changpeng Zhao’s announcement that the company would liquidate its FTX Token (FTT) position, FTX CEO Sam Bankman-Fried aka “SBF” took to social media apparently in a effort to quell rumors of conflict between major cryptocurrency exchanges.
According to a November 8 Twitter thread from Bankman-Fried, FTX he has “agreed on a strategic transaction” with Binance after attempts to clear its withdrawal backlog. SBF said it had asked Binance to step in, with the aim of “clearing liquidity bottlenecks” and hedging assets on a 1:1 basis.
“I know there have been rumors in the media of conflict between our two exchanges, however Binance has shown time and time again that they are committed to a more decentralized global economy while working to improve industry relationships with regulators,” SBF said. “We are in the best hands.”
Zhao issued his own statement on Twitter, saying that FTX approached Binance for help on Nov. 8 in response to a “major liquidity crisis.” According to the CEO of Binance, the transaction that SBF was referring to was a non-binding letter of intent for the major exchange to acquire FTX.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ Binance (@cz_binance) November 8, 2022
This afternoon, FTX requested our help. There is a major liquidity crisis. To protect users, we signed a non-binding LOI (letter of intent), intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crisis. We will carry out a full DD in the next few days.
This is a developing story, and more information will be added as it becomes available.
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