The world's largest exchange for crypto assets like Bitcoin, Binance is set to take over most of rival FTX's business.
“This afternoon FTX asked for our help.
There is a significant liquidity squeeze,” Binance CEO Changpeng Zhao tweeted on Tuesday.
After Zhao himself sowed doubts about FTX's liquidity reserves with a tweet on Sunday, enormous funds were withdrawn from the trading platform in the past few days.
According to American media, customers wanted to withdraw around six billion dollars within 72 hours.
FTX boss Sam Bankman-Fried himself is said to have said this to employees.
The 30-year-old crypto billionaire took to Twitter to confirm liquidity shortages and a non-binding acquisition agreement with Binance for FTX.com, his group's key business.
In the coming days, Binance is said to be checking the competitor's books.
The American business of the crypto exchange is not affected.
All customers are protected and paid in full, Bankman-Fried assured.
He had previously claimed there was nothing to worry about and dismissed rumors of a cash shortage as false.
The uncertain situation at FTX caused nervousness on the crypto market.
The Bitcoin price temporarily fell by more than 13 percent on Tuesday to less than $ 18,000.