After providing liquidity to other crypto firms amid the cryptocurrency turmoil, FTX has found itself in a liquidity crunch. Rival firm Binance has signed a letter of intent to acquire FTX. This appears to be the result of CoinDesk’s recent report, which highlighted the overlap between FTX and Alameda Research, which is the hedge fund owned by Sam Bankman-Fried.
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Binance will first have to complete its due diligence process and has the option to pull out from the deal. However, this only affects FTX’s international operations meaning that its U.S. will not be owned by Binance.
FTX Token (FTT-USD is down almost 30% intraday at the time of writing. Conversely, Binance Coin (BNB-USD) is up almost 10%.