Binance, which is the largest crypto exchange by volume in the world, has officially signed a letter of intent to buy their competition, FTX, which is the third-largest exchange by volume and comes following speculation about FTX’s balance sheet.
Terms of the deal were not disclosed and the letter of intent is nonbinding.
Binance CEO Changpeng “CZ” Zhao said that the firm will conduct due diligence before the acquisition, via Twitter. “This is a highly dynamic situation, and we are assessing the situation in real time”.
According to the Wall Street Journal, people pulled $1.4 billion from FTX on the Ethereum blockchain over the last few days following the breaking crypto news story.
FTX was valued at $32 billion in a funding round in January of 2022.