Binance tightens grip on crypto market with buyout of rival

A CRYPTOCURRENCY business sanctioned in the UK by regulators last year has tightened its grip on the market after buying out one of its biggest rivals in a dramatic bailout.

Binance, the world’s largest cryptocurrency exchange, has come to the rescue of rival FTX, a deal that unites two of the crypto world’s best-known billionaire tycoons. Changpeng Zhao, the founder of Binance, said that FTX had “asked for our help” after a “significant liquidity crunch”. Binance has signed a letter of intent to buy FTX.

FTX’S troubles mark a rapid reversal of fortunes for Sam Bankman-fried. At just 30 years old, Mr Bankman-fried had risen to become a rock star of the crypto world, winning high-profile backers in traditional finance and sharing a platform with the likes of Sir Tony Blair and Bill Clinton.

FTX, which is the third largest crypto exchange by trading volumes, was seen as one of the more reputable companies in a sector where business operations can be loose. The company attracted investment from mainstream financial giants including Blackrock and Softbank, and Mr Bankman-fried interviewed in business publications such as The Wall Street Journal and Bloomberg.

The success of FTX allowed Mr Bankman-fried, who is worth an estimated $15bn (£13bn) according to Bloomberg, to bailout struggling crypto firms this summer. He claimed to have spent an estimated $1bn investing in struggling companies. FTX, which owns the naming rights of the stadium of the NBA basketball team Miami Heat, ran into financial difficulties after a flood of customers attempted to withdraw money.

The rush came after Binance announced plans to sell its entire holdings of FTT, a crypto token issued by FTX. Earlier this week, Mr Bankmanfried accused an unnamed competitor of “trying to go after us with false rumours”.