After a liquidity crisis shook digital assets and raised contagion fears, cryptocurrency exchange Binance announced it will buy its smaller rival FTX

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“This afternoon, FTX asked for our help,” Changpeng Zhao (CZ) the CEO of Binance said. In this liquidity crunch, we are binding to protect users.

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A merger between the two largest crypto exchanges by volume shocked investors.

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Bitcoin fell 10% Tuesday to $17,600, a 52-week low. FTT, FTX's coin, plummeted 85%.

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As crypto prices plummeted, FTX founder and CEO Sam Bankman-Fried spent about $1 billion to save failing enterprises.

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But on Tuesday, the situation was reversed when Bankman-company Fried's experienced a FTT run.

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In response to questions regarding the arrangement, Binance and FTX said they were still working out the specifics.

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“There is a lot to discuss and will take some time,” Zhao tweeted. “This is a tremendously dynamic scenario, and... Binance can cancel at any time.

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Last week, CoinDesk reported that Alameda's balance sheet was mostly FTT, an illiquid cryptocurrency. That scared the investors.

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Binance CEO Zhao announced on Sunday that his business would sell its $580 million FTT assets, His announcement frightened investors and dropped FTT.

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In essence, Bankman-Fried received a capital request for $580 million but lacked the cash to satisfy it.

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“Unbelievable circumstances, and really a complete reversal from what anyone would've predicted even a week ago,” the industry executive told

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