Binance reaches agreement to acquire FTX exchange

Amid the apparent feud between the heads of exchanges Binance and FTX, the two companies have reached an agreement: Binance will acquire FTX, announced its CEO, Changpeng Zhao.

Via Twitter, Zhao explained that FTX is experiencing “a significant liquidity crisis” and asked for support from its competitor to remedy the situation. Therefore, they entered into the agreement “with the intention to acquire FTX outright and help cover the liquidity crisis.”

“There is a lot to cover and it will take time. This is a very dynamic situation and we are assessing the situation in real time,” added Zhao, head of the world’s largest cryptocurrency exchange.

About the agreement, the only detail Zhao provided was that “Binance has the option to withdraw from the agreement at any time.” He also said that expects high volatility for the FTT token. (the one owned by FTX).

For his part, Sam Bankman-Fried, director of FTX, commented that it is about a move aimed at safeguarding the money of its foreign exchange customers.. He also extended “great” thanks to Zhao for his efforts to resolve the problem. The FTX CEO added that the agreement requires Binance to cover customer deposits and both teams are working to restore withdrawals for all users.

As we reported on CryptoNews, it all started last weekend with. Binance posting of all its FTTs in view of the possibility of FTX becoming insolvent. This caused the price of the token to plummet and triggered a response from Bankman-Fried, who accused Zhao of acting against a direct competitor.