Russian cryptocurrency exchange CommEx, also known as Binance’s successor, has formally declared its closing down in April and has ceased accepting deposits.
After acquiring the Russian operations of Binance in September 2023 for an undisclosed sum, CommEx is now dismantling its platform.
On March 25, CommEx started its official Telegram group, which abruptly ceased all deposits and new registrations.
The firm advised users to withdraw their assets to third-party wallets without delay, adding, “We regret to inform you of the gradual suspension of operations on the CommEX platform.”
CommEx will cease servicing futures trading on March 28 and begin discontinuing peer-to-peer exchange on April 2, according to the suspension roadmap. CommEx intends to close down the spot trading platform entirely on April 23 and to suspend its website until May 10.
“User accounts maintaining assets beyond May 10, 2024, will incur a 1% asset management fee,” the announcement states.
As previously documented, Binance alluded to its potential withdrawal from Russia in early September 2023 and the resignations of key local executives, including Vice President of Eastern Europe Gleb Kostarev.
Binance asserted a few weeks later that it had sold its entire Russian operations to the newly formed exchange CommEx but declined to divulge information regarding CommEx’s founders or executives.
CommEx subsequently emphasized its operational autonomy from Binance while acknowledging that some of its founding members had previously been Binance employees.
Local cryptocurrency enthusiasts, recognizing numerous parallels between the Binance and CommEx websites, proclaimed the new exchange the “Russian version” of Binance.US in response to the enigmatic transaction.
Russia constituted the leading market regarding user visits to Binance.com at the time of the transaction, contributing 6.9% of the total visits.
Former Binance CEO Changpeng Zhao and Binance attempted to persuade a U.S. court to dismiss a lawsuit. It lodged with the Securities and Exchange Commission (SEC) in June 2023 when the Binance-CommEx transaction occurred.
Based on allegations that the exchange offered unregistered securities for sale and operated unlawfully in the United States, the SEC filed suit against Binance.
Following his resignation from Binance, Zhao entered a guilty plea in November 2023. After a judge denied his petition to visit family in the United Arab Emirates, he is currently released in the United States on bail with a $175 million surety. Zhao was slated to serve his sentence in February 2024; however, it was adjourned until late April 2024.
Additionally, the termination of CommEx coincides with an increase in the number of nations scrutinizing Binance internationally. The Philippines blocked local users’ access to Binance on March 25, citing concerns regarding the company’s unlicensed operations there.
