CommEx, the successor to Binance crypto exchange in Russia, has made an official announcement about its closure and the suspension of its operations. CommEx had acquired Binance’s Russian business in an undisclosed deal in September 2023 and is now winding down its platform. The announcement was made on March 25 through the official Telegram group of CommEx, where they stated that they would immediately halt deposits and close down new registrations. The firm recommended its users to withdraw their assets to third-party wallets. According to the suspension roadmap, CommEx will stop servicing futures trading on March 28 and will gradually suspend peer-to-peer exchange from April 2. By April 23, CommEx plans to completely shut down the spot trading platform and suspend its website by May 10. The announcement also mentioned that user accounts retaining assets after May 10, 2024, will be subject to a 1% asset management fee. In earlier reports, Binance had hinted at its exit from Russia in early September 2023, as top local executives, including vice president of Eastern Europe Gleb Kostarev, stepped down. Binance later claimed to have sold its entire Russian business to CommEx, without disclosing any details about CommEx founders or executives. CommEx clarified that it operated independently of Binance but admitted that some of its core members were former Binance staff. The deal between Binance and CommEx drew attention from local crypto enthusiasts, who noticed similarities between the websites of Binance and CommEx, referring to the new exchange as a “Russian version” of Binance.US. At the time of the sale, Russia was the leading market in terms of user visits on Binance.com, accounting for 6.9% of total visits. The Binance-CommEx deal occurred while former Binance CEO Changpeng Zhao and Binance were trying to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) in June 2023. The SEC had sued Binance, alleging that the exchange had offered the sale of unregistered securities and operated illegally in the United States. Zhao subsequently resigned from Binance and pleaded guilty in November 2023. He is currently on bail in the U.S. with a $175 million bond, after a judge rejected his petition to visit family in the United Arab Emirates. Originally scheduled for February 2024, Zhao’s sentencing has been postponed to late April. CommEx’s closure also coincides with increased scrutiny of Binance by several countries globally. On March 25, the Philippines blocked local user access to Binance, citing concerns over the firm’s unlicensed operations in the country.
CommEx, the Russian successor of Binance, set to close its operations in April