Crypto exchange Binance is to rescue rival FTX.com after it suffered a cash crunch.
The deal comes after FTX – led by 30-year-old billionaire Sam Bankman-Fried and backed by Brazilian model Gisele Bundchen – suffered a slump in the value of its in-house token amid talk of pressure on the company’s finances.
Binance boss Changpeng Zhao said Bankman-Fried had ‘asked for our help’ after a ‘significant liquidity crunch’.
FTX – led by 30-year-old billionaire Sam Bankman-Fried and backed by Brazilian model Gisele Bundchen – suffered a slump in the value of its in-house token
He said Binance would conduct due diligence over the next few days as the next step towards buying FTX.com.
It marks the latest bout of turbulence in the cryptocurrency world as investors pull out of riskier assets amid rising interest rates.
Bankman-Fried said its US operation FTX.us was not affected. But it marks a reversal of fortunes for the entrepreneur who had previously been seen as the industry’s saviour after rescuing troubled rivals.
Founded in 2019, FTX earlier this year hosted a crypto conference in the Bahamas featuring the likes of Tony Blair and Bill Clinton.
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