Crypto exchange Binance plans to buy rival FTX

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Crypto giant Binance said Tuesday it has signed a non-binding letter of intent to purchase competitor FTX, which announced the deal and acknowledged the acquisition should fix its "liquidity crunches."

FTX founder and CEO Sam Bankman-Fried took to Twitter to share that his firm had "come to an agreement on a strategic transaction with Binance," saying FTX asked its rival for the apparent bailout.

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A few minutes later, Binance founder Changpeng Zhao confirmed via tweet that his company intends to purchase FTX and "help cover the liquidity crunch," and will conduct full due diligence over the coming days.

Changpeng Zhao, CEO of Binance, speaks at the Delta Summit, Malta’s official Blockchain and Digital Innovation event promoting cryptocurrency, in St Julian’s, Malta October 4, 2018. (Reuters/Darrin Zammit Lupi) ( REUTERS/Darrin Zammit Lupi / Reuters Photos)

In a later tweet, Bankman-Fried dismissed what he called "rumors in media of conflict between our two exchanges," saying that "Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators."

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Chief Executive Officer of FTX Trading Limited Sam Bankman-Fried speaks during a House Committee on Financial Services on Wednesday, Dec. 08, 2021, in Washington, D.C. (Photo by Jabin Botsford/The Washington Post via Getty Images) (Photo by Jabin Botsford/The Washington Post via Getty Images / Getty Images)

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Bankman-fried added that Binance and FTX's U.S. operations are not currently part of the deal. 

Reuters contributed to this report.

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