CommEx Denies Binance's Ownership Ties Amid Speculation Over Hidden Relationship
Summary:
CommEx, the new startup that bought Binance in Russia, continues to deny any ownership involvement from Binance. Despite featuring ex-Binance employees and mirroring elements of Binance's design and APIs, CommEx claims it operates independently. Doubts about its ownership transparency persist, with speculations that it might be a shell company for Binance. Binance's CEO confirms former employees joining CommEx and emphasizes its services are not available to users based in the US or Europe.
In the face of increasing doubts surrounding CommEx, the new startup that recently emerged as Binance's buyer in Russia, the company maintains its denial of any Binance ownership ties. On September 29, CommEx reaffirmed in a public statement that Binance, which recently planned its Russian market exit by selling to CommEx, doesn't hold any ownership. "We don't make our Ultimate Beneficial Owner details public, but it's important to clarify that Binance doesn't own us," said CommEx on its webpage, adding that a company representative has chosen not to explain why it's not revealing its ownership details.
CommEx, in its declaration, described itself as a dynamic and effective startup, powered by a team of passionate individuals from varying fields, including some seasoned veterans from Binance. Using the past six months to develop its platform, CommEx mentioned that it had taken on board some former Binance employees during this time, allowing the company to glean insights from Binance's operational and product experiences, thereby indirectly linking themselves to Binance. According to the statement, several former team members from Binance's Commonwealth of Independent States (CIS) division have joined CommEx's team. However, Binance maintains no ownership of the exchange.
Binance CEO Changpeng Zhao confirmed in a September 28 post on X (previously Twitter), that some former Binance CIS unit employees are either planning to or have already joined the newly established firm. He highlighted their move as a positive development.
CommEx's transparency regarding its ownership is in question. However, similarities in website design, API use, and even former Binance staff now part of CommEx continue to fuel conversations around hidden Binance ownership. Adam Cochran, a partner at venture firm Cinneamhain Ventures, theorized that CommEx could be "another shell company set up by Binance." Conversely, some cryptocurrency pundits argue that such a maneuver would diminish the impact of Binance's decision to withdraw from Russia. David Lesperance, the founder of Lesperance & Associates, pointed out that US authorities could swiftly determine if CommEx's new owners were merely stand-ins for Binance, further complicating the situation.
For its part, CommEx furthered its Binance connection by adopting elements such as design, APIs, and even Binance's terms of use. They did this to facilitate a user-friendly atmosphere, Binance's CEO mentioned. Meanwhile, the Binance CEO emphasized that CommEx's services exclude US and European users. He pointed out that IP addresses and Know Your Customer (KYC) blocks would deter European and American citizens from accessing CommEx's services—a condition they placed in their agreement. Based on the data shared by CommEx reps within the firm's official Telegram group, CommEx users are permitted to trade up to 2 Bitcoin (approximately $54,000 at the time of writing) without fulfilling any KYC procedures.
Published At
9/29/2023 12:13:36 PM
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