CommEx, Binance’s successor in the Russian crypto exchange market, has formally declared its cessation of operations and ceased accepting deposits.
Following its acquisition of Binance’s Russian operations in an undisclosed transaction in September 2023, CommEx is now winding down its platform.
An announcement was posted on CommEx’s official Telegram group on March 25, immediately halting deposits and closing new registrations.
“We regret to announce the gradual suspension of operations on the CommEx platform,” the firm stated, advising users to withdraw their assets to third-party wallets promptly.
According to the suspension schedule, CommEx will halt futures trading on March 28 and commence suspending peer-to-peer exchanges from April 2. By April 23, CommEx plans to completely shut down its spot trading platform and suspend its website by May 10.
“User accounts retaining assets after May 10, 2024, will be subject to a 1% asset management fee,” the announcement mentions.
Earlier, in September 2023, Binance hinted at its withdrawal from the Russian market as key local executives, including Gleb Kostarev, vice president of Eastern Europe, resigned.
Shortly after, Binance announced the sale of its entire Russian business to the newly established exchange, CommEx, without disclosing details about CommEx’s founders or executives.
CommEx later emphasized its operational independence from Binance but acknowledged that some of its core team members were former Binance staff.
The undisclosed nature of the deal sparked speculation among local crypto enthusiasts, who noted numerous similarities between the Binance and CommEx websites, labeling the new exchange as a “Russian version” of Binance.US.
At the time of the sale, Russia was Binance.com’s largest market in terms of user visits, accounting for 6.9% of total visits.
The Binance-CommEx deal coincided with former Binance CEO Changpeng Zhao and Binance’s efforts to convince a United States court to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) in June 2023.
The SEC’s lawsuit accused Binance of offering the sale of unregistered securities and operating illegally in the United States.
Subsequently, Zhao resigned from Binance and pleaded guilty in November 2023. He is currently in the United States on bail with a $175 million bond after a judge denied his request to visit family in the United Arab Emirates. Originally scheduled for February 2024, Zhao’s sentencing was postponed to late April.
CommEx’s closure also occurs as more countries globally scrutinize Binance. On March 25, the Philippines blocked local user access to Binance, citing concerns over the firm’s unlicensed operations in the country.
