Binance Triggers Liquidity Crisis, Then Acquires Bankman-Fried’s FTX

FTX native token FTT skyrocketed following the disclosure of an alleged Binance buyout

November 8, 2022 11:25 am

Blockworks exclusive art by axel rangel

Sam Bankman-Fried’s Twitter account has posted a thread claiming that Binance has agreed a deal to buy FTX, the exchange that he had built into a global crypto titan.

The native token of Sam Bankman-Fried’s cryptocurrency exchange FTT is soaring following disclosure of the alleged impending Binance buyout, and has recovered from a low of $14.57 to over $19 at the time of writing — a 36% recovery.

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Binance founder Changpeng Zhao also tweeted about the deal, noting that:“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 FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

Bitcoin and ether are both recovering fast since a precipitous drop on Saturday night — when Zhao declared Binance would soon dump hundreds of millions of dollars in FTX’s native token FTT in response to rumors of Alameda Research’s insolvency.

This is a developing story and will be updated.

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