Binance agreed to buy FTX amid the panic of the looming collapse of FTX’s cryptocurrency exchange.
FTX’s Sam Bankman-Fried’s tweet on Tuesday read:
“Things have come full circle, and FTX.com’s first and last investors are the same: we have agreed on a strategic transaction with Binance for FTX.com.”
Binance CEO Changpeng “CZ” Zhao took to Twitter to confirm the deal, stating that the two exchange giants have signed a non-binding letter of intent. Bankman-Fried and Zhao both said that a complete due diligence process would be in the works in the coming days.
The deal comes amid a CoinDesk scoop last week that caused concern that the balance sheet of Alameda Research, FTX’s corporate sibling, was way too reliant on illiquid tokens, including FTT, FTX’s own token.
FTX’s FTT token rallied 20% from about $14.50 to $17.50. The BNB token of Binance jumped 8% from $326 to $355.
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