In one of the most pivotal moments in cryptocurrency history, FTX CEO Sam Bankman-Fried reached out to OKX on Monday morning to discuss a potential deal—just hours before announcing a nonbinding agreement with Binance. This revelation, confirmed by an OKX spokesperson, sheds new light on the frantic efforts to stabilize FTX amid a rapidly escalating liquidity crisis.
The attempted negotiation with OKX occurred as rumors about FTX’s financial instability began to intensify. Within a 72-hour window leading up to Tuesday’s announcement, customers withdrew approximately $6 billion from the exchange. The sudden outflow was triggered in part by Binance CEO Changpeng Zhao—widely known as CZ—who tweeted on Sunday that his company would liquidate its holdings of FTT, FTX’s native token, citing “recent revelations” without further clarification.
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Why OKX Declined the Deal
Despite the urgency of the situation, OKX chose not to move forward with any acquisition discussions. According to the spokesperson, Bankman-Fried did not disclose a specific price or financial structure for the proposed deal. More importantly, OKX leadership expressed strong reservations about consolidating power within the crypto exchange space.
The team at OKX viewed such a merger as potentially harmful to the broader industry, arguing that reducing competition could undermine decentralization—the core principle underpinning blockchain technology. Instead of stepping in as a buyer, OKX leaders urged Bankman-Fried to resolve the issue directly with CZ.
“OKX encouraged Sam Bankman-Fried to work things out with CZ,” the spokesperson said. “They believed it would be better for CZ to agree not to sell Binance’s FTT holdings rather than proceed with what could be seen as a monopolistic move.”
This diplomatic approach reflected OKX’s strategic positioning: maintaining market stability without compromising long-term industry health.
No Exposure to FTX or Alameda Research
One critical factor that likely influenced OKX’s ability to remain neutral was its lack of financial exposure to either FTX or Alameda Research—the high-frequency trading firm founded by Bankman-Fried.
Neither OKX nor its U.S.-facing sister platform, OKCoin, held significant assets tied to FTX or had outstanding liabilities linked to Alameda. This insulation allowed OKX to assess the situation objectively and avoid being drawn into the spiraling crisis.
In contrast, many other platforms faced mounting pressure as the value of FTT plummeted following Binance’s announcement. The token lost over 80% of its value in less than 48 hours, sending shockwaves across decentralized finance (DeFi) protocols, lending platforms, and investor portfolios.
Market Implications and Industry Response
The events of early November 2025 sent a clear message: even top-tier cryptocurrency exchanges are vulnerable to liquidity crunches and market sentiment shifts. While Binance ultimately backed out of the acquisition due to “due diligence findings” and concerns over potential U.S. regulatory scrutiny, the mere possibility of a Binance-FTX merger raised alarms about centralization risks.
Industry experts have since emphasized the need for greater transparency, improved risk management frameworks, and stronger safeguards against concentrated holdings in key tokens like FTT.
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Frequently Asked Questions
Q: Did OKX ever consider buying FTX?
A: No. Although FTX approached OKX for a potential deal, OKX declined due to concerns about market centralization and lack of detailed financial terms from FTX.
Q: Why did Binance decide to sell its FTT holdings?
A: Binance cited “recent revelations” as the reason for liquidating its FTT position. While no official details were provided, this move significantly contributed to the loss of confidence in FTX.
Q: Was OKX affected by the FTX collapse?
A: No. OKX and its U.S. platform OKCoin had no financial exposure to FTX or Alameda Research, allowing them to remain stable during the crisis.
Q: What happened to the Binance-FTX acquisition deal?
A: The deal was called off shortly after it was announced. Binance cited concerns uncovered during due diligence and potential regulatory challenges in the United States.
Q: How did the crypto market react to the FTX crisis?
A: The market saw widespread panic selling, with billions wiped off valuations. Bitcoin dropped over 10% in two days, and several altcoins experienced steep declines.
Q: Could another exchange collapse happen again?
A: While safeguards have improved since 2025, rapid withdrawals, opaque balance sheets, and over-leveraged trading firms remain systemic risks in the crypto ecosystem.
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Lessons for the Future
The sequence of events leading up to FTX’s near-collapse serves as a cautionary tale for both users and operators in the crypto space. It highlights several key lessons:
- Transparency matters: Users increasingly demand clear disclosures about reserves, liabilities, and affiliated entities.
- Decentralization is a strength: Overreliance on a few dominant players increases systemic risk.
- Crisis response must be swift and coordinated: The speed at which confidence eroded underscores the importance of proactive communication and contingency planning.
Exchanges like OKX demonstrated resilience not just through financial prudence but also through principled decision-making—choosing industry stability over short-term opportunity.
As the crypto landscape continues to evolve, regulatory frameworks, insurance mechanisms, and proof-of-reserves audits will play an expanding role in restoring trust. Platforms that prioritize user protection, operational clarity, and ethical leadership are best positioned to thrive in this new era.
For investors and traders alike, understanding how major exchanges navigate turbulence is essential. Whether evaluating where to store assets or how to interpret market-moving announcements, informed decisions start with access to reliable information and secure infrastructure.