CommEx to Cease Operations: Halts Deposits and Plans Full Shutdown by May 2024
Summary:
CommEx, the successor to Binance's Russian cryptocurrency exchange, is ending its operations and immediately halting all deposits. After acquiring Binance’s Russian business in September 2023, the company is now closing its platform and is recommending that users transfer their assets to third-party wallets promptly. Future trading services will cease from March 28 and peer-to-peer exchange will start to decline from April 2. The company plans a complete shutdown of the spot trading platform on April 23 and will close its website by May 10, 2024. Accounts still holding assets after this date will be charged a 1% asset management fee.
The heir to Binance's cryptocurrency exchange in Russia, CommEx, has formally declared its departure from the business sphere, halting all deposit methods immediately. CommEx, which came into existence following the acquisition of Binance's Russian operations under an undisclosed agreement in September 2023, is now retracting its platform. The firm broadcasted its decision to dissolve operations on Commex platform progressively via an official Telegram message on March 25, simultaneously closing down new enrolments and stopping deposits. Customers have been advised by the company to promptly transfer their resources to external wallets. As part of the plan to suspend the operational protocol, CommEx will discontinue support for futures trading on March 28 and initiate a gradual cessation of peer-to-peer exchange from April 2. April 23 is set to see a complete termination of the spot trading platform, with the plan to suspend website operations by May 10. As per the company's declaration, "Accounts that still hold assets after May 10, 2024, will incur an asset management fee accounting for 1% of the assets." Prior to this, Binance alluded to its possible retreat from Russian markets in the beginning of September 2023 when top executives, including Eastern Europe Vice President Gleb Kostarev, resigned. Binance then transferred its complete Russian business to the newly formed CommEx exchange within a few weeks, refraining from revealing any particulars regarding the CommEx founders or executives. Thereafter, CommEx confirmed its independence from Binance, but acknowledged the presence of ex-Binance staff in its core team. The cryptic transaction provoked speculation within the local crypto community, many of whom compared Binance and CommEx websites, labeling the new exchange the "Russian equivalent" of Binance US. At the time of this transaction, Russia contributed the highest to user visits to Binance.com, with 6.9% of the total visitor count. Earlier reports stated that Binance was selling its entire Russian business to the new exchange, CommEx, but the names of the key people at CommEx were not revealed. This unusual situation led to discussions among Russian crypto enthusiasts, who noted many similarities between the Binance and CommEx websites and dubbed the new platform the “Russian Binance.US”. At the time of the sale, Russia was the most visited market on Binance.com, responsible for 6.9% of total visits. For context, the sale of Binance to CommEx happened while former Binance CEO Changpeng Zhao and Binance were trying to convince a US court to reject a lawsuit filed by the Securities and Exchange Commission (SEC) in June 2023. The SEC accused Binance of illegally operating in the US and selling unregistered securities. After pleading guilty in November 2023, Zhao resigned from Binance and currently resides in the U.S., having secured bail with a $175 million bond. Zhao sought permission for a family visit to the United Arab Emirates, which was declined by the judge. His sentencing, originally scheduled for February 2024, has been delayed until late April. CommEx's exit coincides with increasing global scrutiny of Binance. On March 25, the Philippines imposed a block on the local access to Binance over concerns regarding the company's unlicensed operations within the country.
Published At
3/25/2024 3:54:26 PM
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