Binance to buy Sam Bankman-Fried’s crypto exchange FTX

abdelaziz Fathi

Sam Bankman-Fried, head of one of the largest cryptocurrency exchanges, said he entered into a non-binding letter of intent with rival Binance to acquire FTX business as they face the worst of a liquidity crunch.


Binance CEO Changpeng “CZ” Zhao confirmed the insolvency news and posted the following tweet about the possible buyout, which is pending the full diligence in the coming days.

“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 and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

Zhao – who declared yesterday that his exchange would soon dump hundreds of millions of dollars in FTX’s native token – said that Binance has the discretion to pull out from the deal at any time.

According to Tweets from both Zhao and Bankman-Fried, the takeover impacts only the non-US businesses, The US offshoots of both crypto giants, Binance.US and, will remain independent of the deal.

Binance’s Zhao added in a tweet 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. We expect FTT to be highly volatile in the coming days as things develop.”

The news was shocking as Bankman-Fried has emerged recently as the industry’s white knight, throwing lifelines to many crypto lenders and digital asset brokers which have faltered as cryptocurrencies prices have cratered.

The news comes hot on the heels of CZ declaring that Binance is liquidating its stash of FTT token, which triggered mass withdrawals from FTX with outflows reaching a whopping $451 million. On the other hand, Binance has seen net inflows of more than $411 million over the same period.

A liquidity crisis at a cryptocurrency giant like FTX would make investors worried about a broader contagion that could bring down other major players in the market. However, the native token of Sam Bankman-Fried’s cryptocurrency exchange FTT jumped by 35 percent in the last 45 minutes.

Last week, Bankman-Fried, who is from California but lives in the Bahamas where FTX is based, floated the idea of issuing FTX’s very own stablecoin. And FTX was reportedly in discussions with a clutch of heavyweights from traditional finance to raise up to $1 billion in fresh funding to fuel more deal-making.

The fresh capital injection, which was still subject to negotiations, would keep the crypto conglomerate at the same valuation it had landed after a $400 million funding round back in January. At the time, the cryptocurrency exchange founded by Sam Bankman-Fried was valued at $32 billion.

Commenting on Binance’s acquisition of FTX, Marieke Fament CEO of the NEAR Foundation – which oversees development and funding for Dapps built on NEAR layer 1 Protocol, said:

“Consolidation is inevitable in crypto’s current bear market – but the silver lining is that we can now separate the hype and noise from the applications that have real world utility and the leaders that are making significant and valuable contributions to the future of our sector. There’s nowhere to hide during crypto winter – and developments such as the acquisition of FTX by Binance underscores the challenges and lack of transparency behind the scenes of some key players – which undermine the reputation of crypto. Moving forward, the ecosystem is going to learn from these mistakes and hopefully create a stronger sector that puts honesty, transparency and consumer protection at the heart of their businesses.”

Read this next

Digital Assets

Valkyrie pulls back on Ether futures merge with Bitcoin ETF

Valkyrie Funds LLC will suspend the purchase of Ether (ETH) futures contracts for its Valkyrie Bitcoin and Ether Strategy ETF (BTF.O). Additionally, the firm will unwind any positions in Ethereum that it has already acquired.  

Digital Assets

Hong Kong police arrest 18 in $1.5B billion JPEX fraud

The investigation into the JPEX crypto exchange scandal continues to unfold as Hong Kong and Macau police arrest four more individuals. These arrests, which include individuals considered “relatively close to the core” of the scandal, bring the total number of detentions to 18.

Digital Assets

Gemini tells Dutch users to withdraw assets by November 17

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, announced that it will cease providing services to customers in the Netherlands, citing regulatory requirements imposed by the country’s central bank.

Digital Assets

SEC puts BlackRock, Valkyrie, and Bitwise Bitcoin ETFs on hold

The U.S. Securities and Exchange Commission has delayed its decisions on several bitcoin exchange-traded fund (ETF) proposals, leaving many in the crypto industry feeling pessimistic for any future blessing from the agency.

Digital Assets

Ripple backs out of Fortress Trust acquisition

Ripple has decided to cancel its planned acquisition of Fortress Trust, a custodian company, less than a month after initially announcing the agreement.


France regulators blacklists 21 FX brokers, FuturBTC

France’s financial markets regulator, the Autorité des Marchés Financiers (AMF), today shed light on several unregulated forex brokers representing their offering under several brands. Notably, the AMF has identified only one crypto-assets provider in its latest warning.  

Digital Assets

Flare and Arkham Collaborate for Enhanced Decentralized Data Access

Flare’s blockchain for decentralized data acquisition integrates with Arkham’s Intelligence Platform, offering users advanced analytics and actionable on-chain insights.

Industry News

iFX EXPO International 2023 Successfully Concludes

The most talked about financial event of the year took place in Limassol, Cyprus.

Retail FX

Plus500 Forex Garners Market Attention In The Latest Expert Ranking

Securing the 58th spot in Traders Union’s Best Forex Brokers of 2023 ranking, Plus500, despite its cautionary overall score of 6.3 out of 10, stands out for its stringent regulatory compliance, user-centric WebTrader platform, and a commendable focus on account security, though it lags in providing advanced trading tools and trust management features.