Binance agrees deal to invest in FTX’s non-U.S. functions #Binance #agrees #deal #purchase #FTXs #nonU.S #operations

November 8, 2022 11:40 AM EST

By Geoffrey Smith — Binance has agreed in basic principle to buy the non-U.S. functions of cryptocurrency system FTX, founder and CEO Changpeng Zhao claimed Tuesday.

The information caps a thoughts-bending collection of twists and turns over the final 7 days, which came to a head when Binance – a single of FTX’s initial backers – induced a operate on FTX’s deposit foundation by pulling its own money.

“This afternoon, FTX asked for our assist,” Zhao tweeted, a pair of hours following FTX had reoportedly been compelled to suspend customer withdrawals, sparking fears of a repeat of Celsius Network’s collapse previously in the calendar year.

“There is a significant liquidity crunch,” Zhao included,. “To defend buyers, we signed a non-binding LOI (letter of intent), intending to completely acquire and assist protect the liquidity crunch.”

He added that the acquisition will be subject matter to “a entire” due diligence procedure.

Bankman-Fried confirmed settlement of “a strategic transaction” at the similar time by way of Twitter, but omitted to mention just about anything about being purchased.

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