FTX has been facing a liquidity crisis and Binance agreed to help them by buying FTX.
Let’s see how we got here!
Binance was an early investor in FTX in 2019.
Last July, Binance faced pressure from regulators, and FTX bought out Binance’s shares.
In October, FTX was being investigated on security violation allegations by Texas Officials.
The final blow happened when Zhao suddenly announced on Twitter on Sunday that Binance would liquidate all of its FTT tokens (Worth $584 million)
After the announcement, in 24 hours, $1.2 billion worth of Ethereum and ERC-20 tokens were withdrawn from FTX, according to blockchain data firm Nansen.
According to Nansen, the stablecoin balances decreased by $377 million on FTX over the past two days.
On Tuesday, both Zhao and Bankman-Fried confirmed on Twitter that Binance had acquired FTX.