After Binance announced it would not proceed with a deal to acquire troubled cryptocurrency exchange FTX, Justin Sun, the founder of the Tron cryptocurrency network and the ambassador of Grenada to the World Trade Organization, tweeted late on Wednesday that he and his team were “putting together a solution” with the company.
Sun said merely that his staff “has been working around the clock to minimize future deterioration” without offering any other information. CEO of FTX Sam Bankman-Fried reposted Sun’s tweet.
It was unclear from Sun’s tweet if this strategy would save FTX as a whole or only the Tron-related tokens that were held on the exchange.
FTX Saga Prior To Tron Entry
Only days after tweeting that the exchange was “fine,” FTX founder Bankman-Fried shocked the cryptocurrency world on Tuesday when he revealed that it was having liquidity problems. At the time, Bankman-Fried said he had reached an understanding with Changpeng “CZ” Zhao, the creator of Binance, to carry out a transaction. Later, CZ explained that it was only a non-binding letter of intent to purchase FTX.
After reviewing FTX’s financial records, Binance withdrew from the agreement earlier on Wednesday, claiming that “the difficulties are beyond our control or ability to aid.”
After a released study on Alameda Research’s balance sheet discovered that a sizable portion of Alameda Research’s assets was made up of the FTT token, an exchange token issued by FTX, concerns were raised regarding the stability of the FTX sister firm. Before Bankman-unexpected Fried’s revelation the following week, he and other FTX and Alameda executives tried to allay the worries.
Following the announcement of the abandoned Binance agreement, a number of regulatory bodies, including the U.S. Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission, have hinted that they are looking into or expanding their investigations into the company. According to allegations from Bloomberg and The Wall Street Journal, these organizations are investigating FTX’s handling of customer cash as well as other issues.