To aid with a “liquidity bottleneck” at the rival exchange, cryptocurrency giant Binance reached a non-binding deal on Tuesday to purchase FTX’s non-U.S. business. This surprising rescue has renewed investor fears about cryptocurrencies.
The CEO of FTX, and Changpeng Zhao, the CEO of Binance, reached an agreement despite their high-profile rivalry when withdrawals totaling $6 billion were made from FTX.
From its peak, the cryptocurrency market has decreased by around two-thirds, reaching $1.07 trillion.
Antitrust experts warned that American antitrust authorities could insist on looking into the transaction.
According to Reuters’ article from last week, “Binance is also being looked into by the U.S. Justice Department for alleged breaches of money-laundering laws.