Binance Set to Acquire FTX Amid Liquidity Issues
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Cryptocurrency exchange FTX has come to an agreement on a "strategic transaction" with Binance, Sam Bankman-Fried said in a tweet. He declined to elaborate on the matter, but noted that the transaction is pending due diligence.

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Binance CEO, Changpeng Zhao (CZ), took to Twitter to reveal that his exchange has signed a non-binding letter of intent to acquire FTX for an undisclosed price. CZ added that it was FTX who asked for help amid a "significant liquidity crunch."

"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," CZ added.

The announcement comes amid rumors that FTX might be insolvent, triggering FTX's native token FTT to lose over 30% in a matter of few days. As of press time, FTT is trading at $18.1, according to data from CoinMarketCap.

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Earlier, Binance announced plans to liquidate FTT from its reserves due to "recent revelations that have came to light." Although CZ declined to explain what was the trigger behind the move, he pointed out that the exchange "won't support people who lobby against other industry players behind their backs," referring to FTX.

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