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Binance Agrees To Purchase FTX By Signing Non-Binding Letter Of Intent

Published date:

February 2, 2026

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Cryptocurrencies can be volatile and high risk. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn more about our Editorial Process and Risk Warning.

According to the latest set of tweets by the CEOs of Binance and FTX, the two exchanges have reached an agreement whereby Binance will “fully acquire” FTX.

On November 6, Chanpeng Zhao, CEO of Binance, announced his plans to liquidate $529M worth of FTX Tokens (FTT). This roused the crypto community’s suspicions about FTX facing insolvency.

Now, Changpeng Zhao has announced that Binance signed a non-binding letter of intent (LOI) to buy FTX. Zhao noted that the deal will help cover FTX's liquidity crunch.

This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ Binance (@cz_binance) November 8, 2022

He also warned that $FTT’s prices may be “highly volatile” in the coming days, noting,

"There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time."

Zhao added that Binance has the option to terminate the deal at any time.

Sam Bankman also confirmed the deal in a separate set of tweets.

1) Hey all: I have a few announcements to make.

Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.).
— SBF (@SBF_FTX) November 8, 2022

According to him, the “strategic transaction with Binance” will allow FTX to clear its withdrawal backlog. He also dismissed rumors of disputes between FTX and Binance, citing,

“Binance has shown time and again that they are committed to a more decentralized global economy while working to improve industry relations with regulators.”

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Going forward, Binance will conduct due diligence over the coming days. The contents of the agreement are currently undisclosed.

How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Editorial Process and Risk Warning.

Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

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