Crypto exchange Binance plans to buy rival FTX

Asian Tech Press (Nov 9) -- Binance, one of the world's largest cryptocurrency exchanges, plans to acquire rival FTX.

FTX CEO Samuel Bankman-Fried, also known by his initials SBF, tweeted on Tuesday that FTX has come to an agreement on a strategic transaction with Binance, pending due diligence.

Binance CEO Changpeng Zhao, a Canadian known by his nickname "CZ", also tweeted Tuesday that FTX has a significant liquidity crunch and that it intends to fully acquire FTX to help it cover its liquidity crisis in order to protect its users.

"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," Zhao , said.

The proposed acquisition deal followed an escalating conflict between the two biggest cryptocurrency exchanges in the world.

In early November, media outlet CoinDesk exposed that most assets on the balance sheet of Alameda Research, a sister company of FTX, were FTX's native exchange token FTT.

Zhao tweeted on Sunday, "Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books."

Investors rushed to withdraw cryptocurrencies off the platform amid concerns about the financial health of FTX, according to CoinDesk.

The massive outflow forced crypto billionaire SBF to ask Binance for help, and contributed to a potential merger of the two largest cryptocurrency exchanges in the world.

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