Changpeng “CZ” Zhao, the CEO of Binance, has moved to dispel speculations surrounding the enigmatic crypto company known as CommEX, which emerged abruptly in the wake of Binance’s hasty exit from Russia. Additionally, CZ firmly denied any connection to CommEX and clarified that he is not the owner of this newly emerged entity.
Binance, founded and led by CZ, recently made headlines by announcing its withdrawal from the Russian market following reports of a U.S. Department of Justice investigation into potential sanctions violations. The emergence of CommEX, a company bearing striking similarities to Binance, raised questions about its ownership and relationship with the cryptocurrency giant.
The Denial of Ownership
In a statement made on X (formerly Twitter), CZ categorically stated that he is not the ultimate beneficial owner (UBO) of CommEX and does not hold any shares in the company. Moreover, this firm denial aimed to address the growing speculation regarding CZ’s involvement with CommEX.
In addition, CZ also mentioned that a few former Binance staff members from the region have either joined CommEX or may consider doing so in the future.
Historical Transactions and Integration Testing
CZ shed light on the historical interactions between Binance and CommEX, explaining that they primarily involved the “testing phase” of integration.
Furthermore, during this phase, BNB and CommEX collaborated to ensure a smooth transition, which included a request for CommEX to adopt a similar design and technical features to Binance. The intention behind these efforts was to streamline the migration process and improve the user experience.
Binance Exit Strategy
Binance officially confirmed its decision to exit the Russian market in a press release issued on Wednesday. The announcement clarified that the exchange would not receive any revenue share or retain an option to repurchase shares from CommEX. The press release described the exit from Russia as “full,” also a transitional period of a few months to ease the transition for existing users.
However, Changpeng Zhao’s denial of ownership of CommEX and his clarification regarding the historical interactions between Binance and CommEX aims to address the uncertainty surrounding this mysterious company’s emergence in the context of the Russian exit.
Moreover, as the exchange embarks on its transition out of the Russian market, the relationship between these two also the implications for users in the region remain topics of interest and scrutiny.