Websites linked to FTX have been taken down following a liquidity crisis and pending acquisition by Binance. Websites for Alameda Research and the company’s venture capital arm, FTX Ventures, were offline and made private, while both FTX’s main site and FTX US’ website remain accessible.
FTX founder and CEO Sam Bankman-Fried revealed the liquidity crunch, just hours after he guaranteed that clients assets are fine adding that the exchange did not invest clients’ holdings, even in treasuries.
The crisis unfolded after Binance CEO Changpeng Zhao disclosed Binance’s decision to liquidate its position of 23 million FTX Token worth over $520 million at the beginning of this week for risk management reasons.
Some of FTX’s shareholders learned about the agreement via Twitter on Nov. 8. In his letter to the exchange’s investors, SBF apologized for being hard to contact in the past days, acknowledged he has no idea what exactly the agreement with Binance means, and lastly, closed the letter saying he will be swamped in the coming days and will write again.
The next steps remain unclear. Binance is reportedly performing due diligence and may opt to walk away from the deal after reviewing the company’s structure and books.
