Binance steps in with deal to rescue arch-rival after surge in withdrawals.
JOSHUA OLIVER, SCOTT CHIPOLINA, & NIKOU ASGARI, FT - 11/8/2022
The digital assets industry has been shaken by the near-collapse of Sam Bankman-Fried’s FTX, one of the largest crypto exchanges, which clinched a rescue deal with arch-rival Binance after a surge in customer withdrawals sparked a liquidity crisis.
Binance chief executive Changpeng “CZ” Zhao wrote on Twitter that FTX had “asked for our help,” adding: “There is a significant liquidity crunch.” Binance has signed a letter of intent to buy FTX but said it had “the discretion to pull out from the deal at any time.”