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Binance agrees to buy crypto rivals FTX

— Binance agrees to buy FTX, pending satisfying review of company’s financial situation.
— FTX is in a liquidity fix and looking for a way to settle withdrawal backlog.

Binance has agreed to buy its rivals FTX to help cover its liquidity but can still pull out if its investigations turn up anything worrisome.

The news comes after weeks of public dispute between Binance founder Changpeng Zhao and FTX founder Sam Bankman-Fried. Binance founder had even threatened to pull out its investments in FTX, as it is one of its earliest backers and holds large stakes.

“We will be conducting a full DD in the coming days. Binance has the discretion to pull out from the deal at any time,” Zhao tweeted.

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Binance is currently the world’s largest crypto exchange and TechCrunch reported that the acquisition deal may see investors lose some of their wealth. Also, financial regulators will still go over the deal to ensure that antitrust measures are not being trampled upon.

In a tweet, Bankman-Fried thanked Binance CEO, who is fondly called CZ on social media. “CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world,” he tweeted.

With the liquidity from the deal, FTX hopes to clear the withdrawal backlog that has caused clients to panic, but says that settling everyone may take some time.

Last valued at $32 billion after completing a Series C funding round in January 2022, FTX may be less valuable by the time the acquisition is complete. For contrast, Binance is worth $300 billion.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.