Binance Russian Successor CommEx Winds Down
CommEx, the cryptocurrency exchange that took over the Russian business of Binance in September 2023, has officially announced its decision to wind down operations. It has also immediately halted deposits on its platform.
The announcement comes as Binance faces increasing regulatory scrutiny worldwide, with the Philippines recently blocking local user access to the exchange due to concerns over unlicensed operations.
Key points:
- CommEx acquired Binance’s Russian business in an undisclosed deal in September 2023.
- The exchange has halted deposits and closed new registrations, urging users to withdraw assets to third-party wallets.
- CommEx will gradually suspend operations, including futures trading, peer-to-peer exchange, and spot trading.
- User accounts retaining assets after May 10, 2024, will be subject to a 1% asset management fee.
- The Binance-CommEx deal took place amid legal troubles for Binance and its former CEO, Changpeng Zhao, in the United States.
Read more: Philippines Securities Regulator Moves To Block Crypto Exchange Binance
On March 25, CommEx posted a statement on its official Telegram channel informing users of the platform’s gradual suspension of operations. The exchange recommended that users immediately withdraw their assets to third-party wallets to ensure the safety of their funds.
CommEx announces a suspension roadmap
According to the suspension roadmap, CommEx will stop servicing futures trading on March 28 and begin suspending peer-to-peer exchange on April 2. Also, CommEx plans to completely shut down the spot trading platform on April 23, and the website will follow suit by May 10.
The announcement also noted that user accounts retaining assets after May 10, 2024, would be subject to an asset management fee of 1% of their total assets. Additionally, this measure likely aims to motivate users to swiftly withdraw their funds and ensure a seamless platform closure.
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The closure of CommEx coincides with increased global regulatory scrutiny of Binance. In June 2023, the U.S. Securities and Exchange Commission (SEC) sued Binance, alleging that the exchange offered the sale of unregistered securities and operated illegally in the United States. Changpeng Zhao, Binance’s former CEO, subsequently resigned and pleaded guilty in November 2023.
