- Crypto exchange Binance is all set to acquire rival FTX.
- The acquisition does not include the American branches of either company.
Following Binance’s announcement that it will acquire FTX, Coinbase CEO Brian Armstrong went to Twitter to address customers’ worries about the exchange’s impact on his company. Armstrong began by expressing his empathy for everyone affected by the present FTX issue. In a series of Twitter threads, Armstrong cleared out a few things. The CEO stated Coinbase does not have any material exposure to FTX, FTT token, or even Alameda Research.
Binance CEO Changpeng Zhao (CZ) declined an offer to sell its FTT shares to Alameda Research in an OTC transaction yesterday before news of Binance’s purchase of FTX became public. Alameda Research is a quantitative trading business that offers liquidity in the markets for digital assets and was founded in 2017 by Sam Bankman-Fried, the CEO of FTX.
Status as a U.S.-based Public Corporation
Alameda owes the defunct crypto brokerage Voyager Digital $377 million, according to a court document from July. Alameda settled a $200 million crypto debt with Voyager in September.
These are actions that Armstrong claims Coinbase does not participate in, adding that the business doesn’t do anything with client cash until authorized by the customer and that consumers may withdraw their assets at any moment.
By April 2021, Coinbase had gone public. According to Armstrong, the company’s emphasis on openness and trust stems from its status as a U.S.-based public corporation. According to Armstrong, the problem with cryptocurrency exchanges is that clients have shifted offshore to organizations with murkier and riskier business practices while authorities have been more concerned about “onshore.”
One important thing to keep in mind is that although Binance is in the process of purchasing FTX, the acquisition does not include the American branches of either company, Binance US and FTX US.
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