April 19, 2024
Binance Russia Buyer Silent on Ownership, Denies CZ Involvement
Latest Cryptocurrency News

Binance Russia Buyer Silent on Ownership, Denies CZ Involvement

Amid mounting doubts surrounding CommEx, the enigmatic purchaser of Binance’s Russian division, the newly established company continues to deny any connection to Binance’s ownership.

On September 29, CommEx released an open letter to the public, reiterating that the company has no ties to Binance, despite Binance’s announcement of its departure from Russia through the sale to CommEx.

“Although we do not disclose our UBO (Ultimate Beneficial Owner), we want to make it clear that we are not owned by Binance,” stated CommEx on its website.

CommEx further elaborated in its announcement, stating that it comprises a dynamic and efficient startup team, consisting of numerous passionate individuals from diverse backgrounds. It acknowledged that some core members are former Binance veterans and disclosed that the firm has been developing its platform for six months. During this period, CommEx onboarded former Binance employees, enabling them to learn from Binance’s product and operational experiences and establish indirect connections with the exchange.

The announcement confirms the involvement of former team members from Binance’s Commonwealth of Independent States (CIS) division with CommEx, despite Binance’s lack of ownership in the new exchange.

On September 28, Binance CEO Changpeng Zhao (CZ) confirmed on X (formerly Twitter) that former Binance CIS employees may have joined or will join CommEx, expressing positivity about this development. CommEx has also adopted elements like design, application programming interfaces (APIs), and terms of use from Binance to ensure a seamless user experience, as per CZ’s statement.

CZ emphasized that CommEx does not serve users in the United States and Europe. European and U.S. residents will encounter intellectual property and Know Your Customer (KYC) restrictions when attempting to access CommEx, a term that was agreed upon in the deal, according to CZ. CommEx representatives in the official Telegram group shared that users can trade without completing KYC checks for amounts up to 2 Bitcoins or about $54,000.

CommEx’s reluctance to reveal its owners, along with the presence of former Binance employees and similarities in website design and APIs, has fueled speculation about Binance secretly being the company’s owner.

Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, believes that CommEx is merely “another shell company by Binance.”

However, some cryptocurrency observers argue that such a move would undermine Binance’s decision to exit Russia altogether. David Lesperance, founder of Lesperance & Associates, pointed out that U.S. authorities could swiftly determine if the new owners were acting as fronts for Binance, potentially making the situation worse than if Binance had retained the business.

Image by storyset on Freepik

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