BrandArena: Binance to acquire

Wednesday 9 November 2022

Binance to acquire

One of the world's largest crypto exchanges, Binance has signed a non-binding agreement to acquire one of its competitors,, to “cover the liquidity crunch.”

It however said that the acquisition is subject to full due diligence which is coming up in a couple of days. The Binance CEO, Changpeng Zhao, said that “there is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real-time. Binance has the discretion to pull out from the deal at any time.”

The acquisition is a result of the three-year-old crypto exchange’s request for help after facing a liquidity crunch. Concerns about FTX’s financial health reportedly triggered $6bn (£5.2bn) of withdrawals in just three days.

The panic withdrawals were in part due to a tweet on Sunday from Binance's CEO that the crypto exchange would sell its holdings of FTX’s digital token, known as FTT.

Founded in 2019 by Sam Bankman-Fried and Gary Wang, is a cryptocurrency exchange company that develops a platform for professional trading firms.’s CEO Sam Bankman-Fried corroborated the acquisition story on Twitter saying, “Things have come full circle, and’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for (pending DD etc.)”

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