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Cryptocurrencies

FTX on brink of collapse after 'liquidity crunch' at crypto exchange

Binance steps in with deal to rescue Bankman-Fried's digital asset platform

FTX, led by Sam Bankman-Fried, has seen the value of its FTT token plunge. (Screenshot from FTX's website)

LONDON (Financial Times) -- The digital assets industry has been shaken by the near-collapse of Sam Bankman-Fried's FTX, one of the largest crypto exchanges, which clinched a rescue deal with arch-rival Binance after a surge in customer withdrawals sparked a liquidity crisis.

Binance chief executive Changpeng "CZ" Zhao wrote on Twitter that FTX had "asked for our help," adding: "There is a significant liquidity crunch." Binance has signed a letter of intent to buy FTX, but said it had "the discretion to pull out from the deal at any time."

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