Earlier this summer, 30-year-old crypto wunderkind Sam Bankman-Fried looked like a hero after bailing out his struggling rivals. Now, his crypto exchange, FTX, apparently needs a lifeline itself. On Tuesday, Bankman-Fried announced that FTX had agreed to a “strategic transaction” with Binance, another crypto giant. “This afternoon, FTX asked for our help. There is a significant liquidity crunch,” Binance CEO Changpeng Zhao wrote on Twitter, adding that due-diligence has not yet been carried out and that the deal remains non-binding. Terms of the agreement, or what it will mean for Bankman-Fried’s estimated $16.6 billion fortune, were not immediately clear. Bankman-Fried has emerged as a major Democratic player in recent years. In May, he suggested he might spend $1 billion on campaign contributions through the 2024 elections, though he later reversed course. Tuesday’s announced deal seemingly did not include FTX’s U.S.-based business, which operates as a separate company.
Read it at The Wall Street JournalU.S. News
More Chaos Hits the Crypto Markets as Binance Agrees to Buy FTX Exchange
CHOPPY WATERS
The FTX exchange, helmed by 30-year-old liberal donor Sam Bankman-Fried, faced a liquidity crunch.
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