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| FTX: Cryptocurrency market rocked by near-collapse of exchange | FTX: Cryptocurrency market rocked by near-collapse of exchange |
| (about 1 hour later) | |
| FTX founder Sam Bankman-Fried | FTX founder Sam Bankman-Fried |
| The digital assets market has been rocked by the near-collapse of one of the world's biggest cryptocurrency exchanges, FTX. | The digital assets market has been rocked by the near-collapse of one of the world's biggest cryptocurrency exchanges, FTX. |
| On Tuesday, FTX struck a bailout deal with larger rival Binance after a surge in withdrawals caused a "significant liquidity crunch". | |
| Concerns about FTX's financial health reportedly triggered $6bn (£5.2bn) of withdrawals in just three days. | Concerns about FTX's financial health reportedly triggered $6bn (£5.2bn) of withdrawals in just three days. |
| Binance says it agreed to buy FTX's non-US unit, pending due diligence. | |
| FTX's founder Sam Bankman-Fried and Binance's chief executive Changpeng "CZ" Zhao are two of the most powerful people in the cryptocurrency market and high-profile rivals. | FTX's founder Sam Bankman-Fried and Binance's chief executive Changpeng "CZ" Zhao are two of the most powerful people in the cryptocurrency market and high-profile rivals. |
| Crypto firm Binance to take $200m stake in Forbes | Crypto firm Binance to take $200m stake in Forbes |
| US lawmakers to question crypto executives | US lawmakers to question crypto executives |
| The pressure on FTX came in part from Mr Zhao, who tweeted on Sunday that Binance would sell its holdings of FTX's digital token, known as FTT. | The pressure on FTX came in part from Mr Zhao, who tweeted on Sunday that Binance would sell its holdings of FTX's digital token, known as FTT. |
| "Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books," he said. FTT has lost almost 80% of its value this week. | "Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books," he said. FTT has lost almost 80% of its value this week. |
| On Tuesday Mr Zhao tweeted, "This afternoon, FTX asked for our help. There is a significant liquidity crunch". | On Tuesday Mr Zhao tweeted, "This afternoon, FTX asked for our help. There is a significant liquidity crunch". |
| Binance said it had signed a letter of intent to buy the firm but had "the discretion to pull out from the deal at any time". | |
| Also on Twitter Mr Bankman-Fried said: "Our teams are working on clearing out the withdraw backlog as is. This will clear out liquidity; all assets will be covered 1:1." | Also on Twitter Mr Bankman-Fried said: "Our teams are working on clearing out the withdraw backlog as is. This will clear out liquidity; all assets will be covered 1:1." |
| 1) Hey all: I have a few announcements to make.Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.). | 1) Hey all: I have a few announcements to make.Things have come full circle, and https://t.co/DWPOotRHcX’s first, and last, investors are the same: we have come to an agreement on a strategic transaction with Binance for https://t.co/DWPOotRHcX (pending DD etc.). |
| "This is a black swan event that adds more fears in the crypto space. This cold winter for crypto now takes on more fear," Dan Ives, senior equity analyst at Wedbush Securities told the BBC. | "This is a black swan event that adds more fears in the crypto space. This cold winter for crypto now takes on more fear," Dan Ives, senior equity analyst at Wedbush Securities told the BBC. |
| The news sent shockwaves through the digital assets market, with cryptocurrencies falling sharply. | The news sent shockwaves through the digital assets market, with cryptocurrencies falling sharply. |
| Bitcoin fell by more than 10% to hit the lowest level since November 2020. | Bitcoin fell by more than 10% to hit the lowest level since November 2020. |
| Meanwhile, online trading platform Robinhood lost more than 19% of its stock market value, while cryptocurrency exchange Coinbase fell by 10%. | Meanwhile, online trading platform Robinhood lost more than 19% of its stock market value, while cryptocurrency exchange Coinbase fell by 10%. |
| You may also be interested in: | You may also be interested in: |
| Russian Canadian programmer Vitalik Buterin created Ethereum in 2014 | Russian Canadian programmer Vitalik Buterin created Ethereum in 2014 |
| Russian Canadian programmer Vitalik Buterin created Ethereum in 2014 | Russian Canadian programmer Vitalik Buterin created Ethereum in 2014 |