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Binance to acquire FTX

bloomberg.com

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Re: Binance to acquire FTX

#21

Post by ajaimk »

throwaway4good wrote: post #18

So wouldn't this trigger and potentially be blocked by CFIUS? Given Binance's Chinese roots and the general anti-China sentiment in US politics. Here is an article about the twitter acquisition also with Binance/CZ onboard - this would similar or worse, no?: https://www.brookings.edu/research/the-national-security-gro... The national security grounds for investigating Musk’s Twitter acquisition

"Note that http://FTX.us and http://Binance.us – two separate companies–are not currently impacted by this."

Re: Binance to acquire FTX

#25

Post by ramish94 »

ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

Welcome to the world of unregulated finance.

There’s a reason the FDIC exists and all banks must be insured.

Re: Binance to acquire FTX

#26

Post by shapefrog »

ucha wrote: post #16

SBF said "We don't invest client assets (even in treasuries)". [0] He then says the purpose of the transaction with Binance is to "clear out the liquidity crunches". [1] How could there be a liquidity crunch if assets are not invested? You can't do a bank run on an entity that doesn't function as a bank and doesn't invest clients assets... Something is shifty. [0] https://twitter.com/sbf_ftx/status/158959828579870720…

12:38 PM · Nov 7, 2022 2) FTX has enough to cover all client holdings. [0]

4:03 PM · Nov 8, 2022 2) Our teams are working on clearing out the withdrawal backlog as is. This will clear out liquidity crunches; all assets will be covered 1:1. This is one of the main reasons we’ve asked Binance to come in. [1]

has enough to cover all client holdings ---> not enough to cover all client holding in 24 hours. Either they lost a billion or so dollars of client segregated funds in a day down the back of the sofa or it was a lie the whole time.

Re: Binance to acquire FTX

#27

Post by redox99 »

throwaway4good wrote: post #18

So wouldn't this trigger and potentially be blocked by CFIUS? Given Binance's Chinese roots and the general anti-China sentiment in US politics. Here is an article about the twitter acquisition also with Binance/CZ onboard - this would similar or worse, no?: https://www.brookings.edu/research/the-national-security-gro... The national security grounds for investigating Musk’s Twitter acquisition

Isn't ftx.com[1] from the bahamas, and binance from the cayman islands?

[1] Not ftx.us, which is not getting bought

Re: Binance to acquire FTX

#29

Post by throwaway4good »

throwaway4good wrote: post #18

So wouldn't this trigger and potentially be blocked by CFIUS? Given Binance's Chinese roots and the general anti-China sentiment in US politics. Here is an article about the twitter acquisition also with Binance/CZ onboard - this would similar or worse, no?: https://www.brookings.edu/research/the-national-security-gro... The national security grounds for investigating Musk’s Twitter acquisition

This is article says it is only the non-US part of FTX that is in play:

https://www.cnbc.com/2022/11/08/binance-offers-to-buy-ftxs-n...

Binance offers to buy FTX’s non-U.S. operations to fix ‘liquidity crunch’

The acquisition impacts only the non-US businesses, FTX.com. FTX.us will remain independent of Binance. The deal, according to Tweets from both Zhao and Bankman-Fried, rests on a non-binding letter of intent, pending full due diligence.

Re: Binance to acquire FTX

#30

Post by anonu »

ramish94 wrote: post #17

I’m a little ignorant to the whole crypto ecosystem, so can someone give me a quick rundown on the chain of events that led to this? Seems a little out of left field. BTX, from the outside looking in, looked to be one of the more well run, stable crypto exchanges. $1.02 billion in revenue with $388M in net income in 2021. They didn’t go on any crazy hiring spree when they didn’t have to. Liquidity crisis implies that…

I can't help you but all I can say is empires rise and fall faster than a house of cards in this space.
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