Binance CEO CZ Has Signed a Letter of Intent to Acquire FTX

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Earlier today, FTX SBF and Binance CZ, which had been arguing for many days, seemed to have ushered in a turning point. CZ posted on Twitter that “Because FTX has asked Binance for help in the afternoon to solve the late-night withdrawal suspension and liquidity crunch crisis”, he has reached an agreement with FTX and signed a wholly-owned acquisition of ftx global station. (ftx.com) Letter of Intent.

CZ: “This afternoon, due to a severe liquidity crunch, FTX asked us for help. To protect users, we signed a non-binding letter of intent regarding the wholly-owned acquisition of FTX.com and to help resolve this liquidity issue. Sexual austerity issues. In the next few days, we will be conducting a full due diligence (DD) process.” 

Since 7 p.m., FTX has stopped on-chain withdrawals of ETH, Tron, and Solana

FTX fell into a storm of stopping on-chain withdrawals on the evening of the 8th. Although the current on-chain withdrawal channel has not been closed, data on multiple blockchains shows that the most recent withdrawal from the wallet on the FTX exchange chain occurred in 5 hours ago, around 7pm. 

The data on the Ethereum chain shows that the first 7 pages of transaction information in FTX’s Ethereum wallet are only deposit transactions. The last withdrawal record at 7 p.m. shows that the user has withdrawn 963 COMP tokens (about $45,000) of the Defi lending protocol Compound. Moreover, the current FTX wallet ETH balance is only 9296 pieces ($13,503,365), and the stable currency $USDT is only 40 million pieces.

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According to a report by foreign media The Block on the evening of today (8), on-chain analysts said that the situation of FTX on the Tron and Solana blockchain networks is not optimistic. Research analyst Steven Zheng said: FTX seems to have stopped processing transactions from Ethereum. Solana, and Tron blockchain networks for on-chain withdrawal applications, while users have been queuing for withdrawals. 

The FTX exchange and the CEO SBF have not yet responded to the matter. On November 7, SBF responded to the user run caused by Alameda’s exposure that a large amount of assets and collateral were FTT, indicating that FTX has over 1 billion USD overcollateralized cash, available for withdrawal by all users. 

FTX exchange token FTT pulls sharply after being hit hard again

Affected by the continuous fermentation of FTX’s suspension of on-chain withdrawals, the FTT exchange token FTT can be described as worse today. According to the data of Binance, although FTT, which was already under strong short selling, rebounded at noon today, it stabilized at $18. about. However, affected by the news of the withdrawal of withdrawals on the FTX chain, it was hit hard again. It has fallen by nearly 20% since the noon rebound high, and the intraday drop was once more than 35%. 

However, it retreated after CZ surged 45% to $20.7 following the announcement.

According to a report yesterday (7th), Caroline Ellison, CEO of Alameda Research, once countered CZ on Twitter, saying that if CZ wants to liquidate FTT and minimize the impact on the market, Alameda is very willing to pay the price of $22. All acquisitions.

As soon as the news of CZ’s acquisition of FTX came out, BNB surged by 25% within 30 minutes, hitting $380.

SBF, the CEO of the FTX exchange, distributed a tweet in the early morning of the 9th, explaining the current situation of FTX:

● FTX has reached a strategic cooperation with Binance, but the details have not yet been finalized.

● Binance has stepped in to help FTX solve the liquidity problem, and the FTX team is currently working on the withdrawal backlog.

● The relationship between Binance and FTX is going in the right direction 

Two hours after the deadline, FTT plummeted again, falling below $10 in a straight line, with an intraday drop of more than 58%.


Post time: Nov-16-2022