The cryptocurrency exchange Binance announced its plans to acquire rival FTX Trading, in what appears to be a bailout of FTX.

The owners of the two exchanges, Samuel Bankman-Fried of FTX and Changpeng Zhao of Binance, announced the deal on Twitter. They, however, did not disclose any details.

Zhao said on Twitter that the deal was pending due diligence. 

The fallout of the deal is enormous for Binance, which is already the biggest cryptocurrency exchange by daily volume.

The development would further consolidate its dominance in the cryptocurrency industry. FTX was the third-largest exchange as of this week.

“This afternoon, FTX asked for our help. There is a significant liquidity crunch,” Zhao announced on Twitter. “To protect users, we signed a non-binding (letter of intent), intending to fully acquire FTX and help cover the liquidity crunch.”

Last week, Binance said it intended to offload its holdings of the token, triggering some anxiety about FTX’s financial health. 

“We have agreed on a strategic transaction with Binance,” Bankman-Fried said in a tweet on Tuesday.

He added, “CZ has done, and will continue to do, an incredible job of building out the global crypto ecosystem, and creating a freer economic world.” 

Image source: Outlook India