The shocking mega-deal set to reshape the world of crypto
Billionaire Changpeng “CZ” Zhao consolidated his position atop the crypto world with a stunning move to take over FTX.com, the suddenly troubled firm led by his chief rival and one-time disciple, Sam Bankman-Fried.
The letter of acquisition intent by Changpeng Zhao’s Binance Holdings came after a bitter feud between the two men spilled out into the open.Such moves would be prohibited on Wall Street but isn’t uncommon in this rough-and-tumble corner of finance, which remains largely devoid of regulation about a decade year after its founding. Ironically, it was Bankman-Fried who was pushing for greater regulation, something that Zhao has largely opposed.
The acquisition will reshape the more than $US1 trillion industry that is already dealing with a prolonged market downturn. The two founders made the announcement on Twitter concurrently. “To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch,” Zhao said in a tweet.“A huge thank you to CZ, Binance, and all of our supporters,” Bankman-Fried said on Twitter. “Our teams are working on clearing out the withdrawal backlog as is.
Bitcoin swung between gains and losses, dropped below $US19,000 for the first time since October 21. BNB, the native token of the Binance blockchain, did the same and was little changed after jumping as much as 15 per cent.For the crypto industry broadly, FTX’s demise is another example of a once-towering player laid low when a crisis of confidence forced a run on its assets.
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