Crypto Frontline

United States – Squabbles of the two biggest offshore crypto trading platform bosses in public led to the acquisition of FTX. 

The two biggest offshore exchanges are joining after squabbling in public between Changpeng Zhao, the chief executive of Binance, and Sam Bankman-Fried, the boss of FTX. The squabbling lasted for a week, and it was because of a bank run and an awkwardly forced sale on November 8, Tuesday. 

Zhao tweeted that FTX sought help from Binance. There’s a big liquidity crunch, and Binance signed a non-binding contract, a letter of intent, to fully obtain FTX.com. 

Bankman-Fried tweeted the news. He stated that the last and first inventors of FTX.com are the same. They came to an agreement on tactical operation with Binance. 

The contract will see FTX being fully bought by Binance, which is the return for covering the cash crisis at the beleaguered crypto trading platforms. Furthermore, no one among these parties disclosed further terms. 

Both FTX.us and Binance.us will stay independent. These are two American crypto trading platforms. 

Bankman-Fried is a big donor to the Democratic party in the United States or the US. FTX was the top-20 sponsor of the presidential campaign of Joe Biden, providing more than $5 million. Bankman-Fried is informed to have provided around $40 million this 2022 in the run, up until the midterm elections. 

The two executives are some of the most famous players in the crypto industry, known as BF and CZ. These two can move crypto markets with a single tweet. They coordinated with each other in the past when Binance invested in FTX at the inception of crypto trading. 

However, on Sunday, November 6, CZ posted a thread stating that Binance would sell about $2 billion worth of FTT cryptocurrency tokens because of the previous revelations that came to light. CZ also stated that FTX made these years before and provided them to investors. 

Even though CZ didn’t require the accusations, his post was days after Dirty Bubble Media, a pseudonymous digital asset researcher, accused another company of SBF, Alameda Research. This researcher accused Alameda of insolvency, wherein it held a big crisis of its assets in FTT. The researcher stated that it’s as if SBF discovered a way to hack the funding system, wherein it printed billions of dollars out of the air. 

The decision of Binance to sell the altcoins provoked an instant response, with FTX users rushing to get their funds from the crypto trading platform. SBF commented at CZ on Monday, November 7, stating that a competitor is attempting to go after the company with false accusations. The company assured us that FTX and the assets are safe.