Crypto exchange Binance has agreed to buy rival exchange FTX’s non-US business following a war of words between the company’s two chief executives.

FTX appeared to be in freefall early this week after reports found that the company’s native token, FTT, made up around a third of sister company Alameda Research’s balance sheet. Upon the release of this report, Binance chief exec Changpeng ‘CZ’ Zhao said that the company would liquidate its holding in FTT, sending both the token and the entire crypto market into a downward spiral as investors withdrew more than $6 billion in the 72 hours before Tuesday.

In an about turn, FTX's billionaire owner Sam Bankman-Fried announced on Tuesday that Binance had signed a non-binding agreement on Tuesday to buy FTX's non-US unit to help cover a "liquidity crunch".

Announcing the deal, CZ tweeted: “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 http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.

“There is a lot to cover and will take some time. This is a highly dynamic situation, and we are assessing the situation in real time. Binance has the discretion to pull out from the deal at any time. We expect FTT to be highly volatile in the coming days as things develop.”

In his statement, Bankman-Fried said that "protecting shareholders is our highest priority" and that he is "going to do what [he] can to protect customer assets".

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