FTX and Binance reach a strategic agreement! CZ: Intends to fully acquire FTX, FTT soars over 20%

After experiencing a withdrawal suspension issue last night, the exchange FTX's CEO and Binance's CEO finally came forward early this morning to address and resolve the situation. SBF stated that they have reached a strategic agreement with Binance regarding the incident, and the team is currently working on clearing the withdrawal backlog to alleviate liquidity constraints.

The cryptocurrency exchange FTX experienced a withdrawal crisis last night, and the CEOs of Binance and FTX finally came forward early this morning to explain and calm the situation. SBF stated that they have reached a strategic agreement with Binance to address the withdrawal backlog and alleviate liquidity tightness.

SBF mentioned that this is why they sought help from Binance, ensuring a 1:1 asset guarantee and protection of user assets.

Additionally, SBF clarified that there is no conflict between the two parties, and Binance has repeatedly expressed its commitment to building a more decentralized global economy while working to improve relationships with regulatory authorities.

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

Following SBF's statement, Binance CEO CZ stated that they received a plea for help regarding severe liquidity tightening from FTX this afternoon. To protect users, they signed a non-binding letter of intent to fully acquire FTX to address the liquidity crisis, and will conduct a full due diligence in the coming days.

"We are assessing the situation in real-time, and Binance reserves the right to withdraw from the deal at any time. As the situation unfolds, we expect significant volatility in FTT in the next few days. Stay SAFU," CZ 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 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

Following the incident, FTT quickly rebounded by over 20%, with the price at around $18.25 at the time of writing.