Binance signs non-binding LOI to acquire FTX
There have been posts all over social media about a possible deal between Binance and FTX. Changpeng Zhao, commonly known as “CZ”, the CEO of Binance, announced that the firm has signed a non-binding letter of intent (LOI) to acquire FTX.
However, the situation is dynamic and Binance may drop the negotiations with FTX at any time.
Changpeng Zhao said:
“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 http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop”.