Binance’s Russian Exodus: Did Key Players Shift To The New Kid On The Block, CommEX?

Binance, the world’s largest crypto exchange, recently made headlines with its decision to exit the Russian market. But the aftershocks of this have led to further revelations, particularly concerning the involvement of the platform’s former employees in the new exchange, CommEX.

Changpeng Zhao (CZ), the founder and CEO of the world’s largest crypto exchange, took to X (formerly Twitter) to share insights into this transition.

Former Binance Talent Flocks To CommEX?

In what may seem like a coordinated decision, several former Binance employees, especially from the cryptography and information security teams, migrated to CommEX.

Zhao’s comments on X suggest that these shifts might not be coincidences. “A few ex-Binance CIS team members may {have} join{ed} their {CommEX} team, or have already done so. We think that is a good thing,” Zhao stated, crediting the speculations swirling in the crypto circles.

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,…

— CZ Binance (@cz_binance) September 28, 2023

Notably, the affiliation between CZ’s crypto exchange and CommEX becomes more apparent when one observes the similarities in the user interface of the two platforms.

Addressing concerns and queries about this resemblance, Zhao clarified that it was a deliberate choice. “Their design, APIs, etc., are similar to Binance. We asked for this to ensure a smooth user experience,” CZ elucidated.

CommEX: A New Challenger With Familiar Features?

Despite its recent launch, CommEX managed to grab attention, partly due to its association with Binance’s Russian business sale.

The exchange, which boasts features akin to CZ’s crypto exchange, such as Spot, Futures, Simple Futures, and P2P services, does not cater to US or European Union users. Zhao emphasized the presence of IP and KYC blocks on CommEX, stating that this was a condition the exchange insisted upon during the deal.

Furthermore, to lay to rest any whispers of hidden ownership or ulterior motives, Zhao was categorical about his detachment from the new exchange. The CEO also addressed the talk of potential buy-back options reminiscent of other major business deals in Russia. 

Zhao noted:

I am not their {ultimate beneficial owner} 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.)

According to CZ, as the transitional period unfolds, crypto transfers between both exchanges are anticipated to become commonplace, especially as users migrate their assets. Zhao added: “There are also older transactions during the testing phase of the integrations. This is expected.”

Featured image from Unsplash, Chart from TradingView