Binance is set to acquire the FTX crypto exchange in a surprise turn of events on Tuesday.

Just a day after FTX CEO Sam Bankman-Fried said his company was “fine” and would continue to be so, FTX and Binance have reached a deal to have Changpeng Zhao’s company buy FTX.

Both the Binance chief and SBF tweeted the development, with reference to a liquidity crunch that has seen FTX come full circle as a crypto exchange. Zhao tweeted:

“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 http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”

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

Bankman-Fried confirmed the deal was on the table, also tweeting earlier on Tuesday:

“Hey all: I have a few announcements to make. Things have come full circle, and http://FTX.com’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for http://FTX.com (pending DD etc.).”

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

The news follows recent reports about Alameda Research’s balance sheet and Tuesday’s massive price dump for the FTX token.

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