Mr. Zhao, who tweeted on Sunday that Binance would sell its shares of FTX’s digital token, known as FTT, contributed to the pressure on FTX.
He remarked, “We have chosen to liquidate any remaining FTT on our books because to recent disclosures that have come to light.” The value of FTT has decreased by approximately 80% this week.
Mr. Zhao tweeted on Tuesday, “FTX asked for our assistance this afternoon. There is a severe liquidity crisis.
Despite having signed a letter of intent to purchase the company, Binance stated that it had “the authority to terminate the agreement at any time.”
Moreover, Mr. Bankman-Fried stated on Twitter: “The withdraw backlog is currently being cleared by our personnel. Liquidity will be cleared, and all assets will be covered in full.”
The protection of customers is crucial, and he continued, “We are in the best hands.”
Additionally, Mr. Bankman-Fried indicated that the US division of FTX was a different firm and “not immediately touched by this.”
1) Hey all: I have a few announcements to make.
Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
— SBF (@SBF_FTX) November 8, 2022
The market for digital assets was rocked by the announcement, and cryptocurrencies plunged.
The price of bitcoin dropped more than 10% to its lowest point since November 2020.
Online trading platform Robinhood had a loss of more than 19% in stock value, and cryptocurrency exchange Coinbase saw a decline of 10%.
