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

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

article-image

Blockworks exclusive art by axel rangel

share

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.

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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Avail.jpg

Research

Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.

article-image

Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself

article-image

While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space

article-image

Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow

article-image

Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving

article-image

BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday

article-image

Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC