Crypto billionaire Changpeng Zhao shocked the industry with an agreement to buy FTX.com, following an exchange of social media posts regarding liquidity concerns.
Binance has signed a non-binding agreement to fully acquire FTX.com – a major unit within Sam Bankman-Fried’s crypto firm – according to a social media post by Changpeng «CZ» Zhao.
«This afternoon, FTX asked for our help,» Zhao said in a tweet. «There is a significant liquidity crunch. To protect users, we signed a non-binding [letter of intent], intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full [due diligence] in the coming days.»
The acquisition agreement does not involve FTX.US, a separate exchange also founded by Bankman-Fried.
Pre-Agreement Tweets
The acquisition agreement follows an exchange of social media posts between the two crypto billionaires with Zhao on Sunday saying he would liquidate all holdings in FTX token FTT, valued at over $500 million at the time, due to «recent revelations», without elaborating in detail.
In the 72 hours before Tuesday morning, FTX had seen about $6 billion in withdrawals, according to a «Reuters» report citing a message sent to staff by Bankman-Fried.
Social Media Reversal
On Monday, Bankman-Fried had still insisted that FTX remained healthy and that its assets were «fine» but communications had shifted by Tuesday.
«Things have come full circle, and FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for FTX.com,» Bankman-Fried said on social media.
«I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.»
