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On Thursday (10 November 2022), TRON DAO Founder Justin Sun says he is “putting together a solution together with FTX to initiate a pathway forward” after Binance decides to “not pursue the potential acquisition of FTX.com.”
Here is the timeline of events…
On 8 November 2022, Binance CEO Changpeng Zhao (aka “CZ”) and Samuel Bankman-Fried (aka “SBF”) shook the crypto market with a pair of stunning announcements:
1) Hey all: I have a few announcements to make.
— SBF (@SBF_FTX) November 8, 2022
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 afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
On 9 November 2022, CZ shared on Twitter a letter he had sent out to the entire Binance team about the potential deal to acquire FTX:
In the spirit of transparency, might as well share the actual note, sent to all Binance team globally a few hours ago.https://t.co/IUNkPcLC8T pic.twitter.com/XGlIJB7EV5
— CZ 🔶 Binance (@cz_binance) November 9, 2022
As CryptoGlobe reported yesterday around 6:00 p.m. UTC, three pieces of news came out earlier on that day, which taken together suggested it was highly unlikely for Binance to go ahead with the potential acquisition of FTX.
The most important of these three news items was a Bloomberg report published around 4:11 p.m. UTC, which stated that “US regulators are investigating whether beleaguered crypto-exchange FTX.com mishandled customer funds, and they’re looking into the firm’s relationships with other parts of Sam Bankman-Fried’s crypto empire.” This report also mentioned that “the inquiries by the Securities and Exchange Commission and the Commodity Futures Trading Commission relate to the liquidity crisis that has pushed FTX to the brink, according to three people familiar with the matter.”
Then, at 9:00 p.m. UTC on 9 November 2022, Binance announced why it was not able to go ahead with the plan to fully acquire FTX.com, pointing out that although it was hoping to “support FTX’s customers to provide liquidity”, the issues it discovered as part of its due diligence process in addition and via the various news reports about FTX were “beyond” its “control or ability to help”:
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
Around the same time, Wall Street Journal (WSJ) reported that the FTX CEO was calling around to get emegrecy funding of up to $8 billion in order to handle withdrawals.
Finally, at 3:00 a.m. UTC on 10 November 2022, TRON DAO Founder Justin Sun announced that he is working with FTX to figure out a way to rescue FTX:
The ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022
And three hours later, he announced:
This is only the initial step taken towards a wholistic solution that is being crafted to resuscitate and return to normalcy for all #FTX users. I greatly appreciate the collaborative work between @FTX_Official teams 🔥
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022
At 7:42 a.m. UTC, crypto influencer “Cobie” sent out a tweet that shows some leaked information from SBF on an FTX Slack channel about his intention to “do right by customers”:
A msg from SBF on FTX slack that got leaked to me by some telegram anon, have verified its real w another pic.twitter.com/XMjIM9nSkx
— Cobie (@cobie) November 10, 2022