Huge news coming from the 2 biggest CEXs and their CEOs,
CZ (CEO of Binance) just tweeted “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.”
and then Sam (CEO of FTX) also tweeted
” 1) Hey all: I have a few announcements to make. Things have come full circle, and http://FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for http://FTX.com (pending DD etc.).
2) Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. It may take a bit to settle etc. — we apologize for that.
3) But the important thing is that customers are protected.
4) A *huge* thank you to CZ, Binance, and all of our supporters. This is a user-centric development that benefits the entire industry. CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.
5) I know that there have been rumors in media of conflict between our two exchanges, however Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators. We are in the best of hands.
6) (Note that http://FTX.us and http://Binance.us–two separate companies–are not currently impacted by this. http://FTX.us’s withdrawals are and have been live, is fully backed 1:1, and operating normally.)
It also hints that they were really facing some serious concerns but now as per SBF there has been some agreement between both to keep things right.
Also irony is SAM had to ask CZ for bailout as last resort. While CZ moved the market single handedly in last 3-4 days.
NOTE: as of now the agreement is to acquire only FTX.COM , Not the other entities like Alameda Research or FTX US. Just wild assumption CZ may try hard to negotiate on those too as he left a clause there to pull out from deal anytime.