CZ confirmed that Binance encouraged CommEX to have a similar design and technical features as Binance.
Binance is the world leader in cryptocurrencies, a sector that has recently gone through a series of scandals, including hacks, thefts and stock market crashes. It could be under investigation by US authorities. According to a report by the Bloomberg agency last May, Binance was suspected of having allowed Russian people to evade US sanctions imposed against Moscow after the invasion of Ukraine.
Changpeng Zhao (CZ) has denied claims that he may be the owner of CommEX, a company whose identity continues to raise suspicions. CZ issued the disclaimer on Thursday in line with growing speculation about the ownership of the mysterious company.
Earlier this week, CZ announced that Binance would leave Russia. In the announcement, he stated that the decision has to do with an ongoing investigation of the company by the United States Department of Justice that alleges that it may have violated sanctions.
“We acknowledge that operating in Russia is not compatible with Binance’s compliance strategy,” company spokesperson Noah Perlman was quoted as saying in a recent statement.
Meanwhile, on the same day, reports also emerged that CommEX had purchased Binance’s business in Russia. However, CommEX has little to no trading history. In fact, the company appears to be only a few days old, and even more so, it still looks a lot like Binance.
In a bid to put an end to all speculation about having affiliations with CommEX, CZ has now taken to X (formerly Twitter) to exempt itself from such ties. His statement reads as follows:
“Some answers about Binance/CommEx.
There will be crypto transfers between Binance & CommEx as users migrate with their funds. There are also older transactions during the testing phase of the integrations. This is expected.
A few ex-Binance CIS team members may join their team, or have already done so. We think that is a good thing.
Their design, APIs, etc. are similar to Binance. We asked for this to ensure a smooth user experience.
CommEx does not service US or EU users. They have IP and KYC blocks. This is a term we asked for in the deal.
I am not their UBO, nor do I own any shares there. The deal does not have any buy back options. (A google search seem to show some businesses like Mercedes, McDonalds, Nissan have buy-back options in their Russia sell off deal. This is not the case here.)”
Meanwhile, CZ attempted to dissuade any further rumors that might arise from CommEX’s recruitment pattern. He hinted that some former Binance employees in the region have already joined the company. Zhao also shared that there is a possibility that many more employees in the region will do the same in the future.
Similarity Between Binance and CommEX, According to Changpeng Zhao
According to Zhao, the similarity in the perspectives of both companies was well thought out in the times before the transition. CZ confirmed that Binance encouraged CommEX to have a similar design and technical features as Binance. However, this is only to ensure a smooth transition, the CEO added.
Interestingly, Binance has confirmed that there will be no revenue split between the companies. Binance also states that there is no option to buy back shares of the new company.
The abovementioned therefore implies a “total” exit from Russia, with the transition expected to be completed within a few months.
By Leonardo Pérez