Cryptocurrency exchange Binance intends to buy competing FTX

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Binance has agreed to acquire cryptocurrency exchange FTX amid growing panic among investors who fear that FTX is unable to maintain the necessary level of liquidity.

Binance CEO Changpeng Zhao announced the upcoming deal on Twitter, revealing that the two crypto industry giants have signed a letter of intent.The head of Binance clarified that the initiative came from FTX CEO Sam Bankman-Fried, who turned to Zhao for help in overcoming the liquidity crisis.The agreement is non-binding, meaning the parties have the right to change their minds.

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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 https://t.co/BGtFlCmLXB and help cover the liquidity crunch.We will be conducting a full DD in the coming days.

— CZ Binance (@cz_binance) November 8, 2022

The news caused FTT, FTX's native token, to rise by 20%, from around $14.50 to $17.50.In turn, the Binance BNB token rose in price by 8%, from $326 to $355.

Bankman-Fried and Zhao said that in the next couple of days there will beA full due diligence of FTX's financial condition has been initiated.Then, a joint decision will be made on the timing and procedure for the purchase of the FTX exchange by Binance.

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1) Hey all: I have a few announcements to make.

Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).

— SBF (@SBF_FTX) November 8, 2022

Amid concerns about FTX's financial condition, investors began to withdraw en masse
bitcoins, as a result of which the balance of the crypto exchange in this asset became almost zero.According to Coinglass, about 20,000 BTC have been withdrawn from FTX in the past 24 hours.

Earlier on Tuesday, November 8, received
information that the FTX cryptocurrency exchange has stopped processing customer requests for withdrawals.

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