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Binance and FTX sign non-binding LOI after liquidity issues

Crypto exchange Binance and FTX have signed a non-binding LOI (Letter of Intent).

By Luc Vesters
• 2 min read
Binance and FTX sign non-binding LOI after liquidity issues

Crypto exchange Binance and FTX have signed a non-binding LOI (Letter of Intent). A non-binding LOI (Dutch translation: non-binding letter of intent) means Binance could acquire its U.S. rival FTX, but Binance has the option to walk away from the deal at any time. This was stated by Binance CEO Changpeng "CZ" Zhao in a View post on X. The agreement outlines the current status of discussions or negotiations between the parties.

Binance CEO confirmed FTX's liquidity problems. He noted that the U.S. crypto exchange asked Zhao for help to resolve significant liquidity shortfalls. FTX CEO Sam Bankman-Fried also called it a "strategic transaction" between the two exchanges in a View post on X. He further thanked Zhao and assured that all FTX customers are safe.

After the large outflows tied to doubts about FTX's solvency, withdrawals from the exchange were halted in the afternoon. According to the View post on X, FTX will continue to exist only as a U.S. exchange. Meanwhile, Zhao expects the FTT token to remain highly volatile. He described the acquisition as a "dynamic process" being evaluated "in real time."

Be aware that Binance reserves the right to exit the deal at any time.

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