Binance’s Russian successor, CommEx, will close in April

CommEx, the successor to Binance crypto exchange in Russia, has officially announced that it has stopped operations and stopped taking deposits.

After acquiring Binance's Russian business in September 2023 in an undisclosed deal, CommEx is winding down its platform.

CommEx issued an announcement on March 25, immediately suspending deposits and closing new registrations on the official Telegram group.

The company advised users to withdraw their assets to third-party wallets immediately, saying, “We have to inform you that operations on the CommEX platform have been gradually suspended.”

According to the ban's roadmap, CommEx will suspend futures trading on March 28 and begin banning peer-to-peer trading from April 2. On April 23, CommEx plans to completely shut down its space trading platform and suspend its website until May. 10.

“User accounts holding assets after May 10, 2024 will be subject to a 1% asset management fee,” the notice said.

As previously reported, Binance has hinted at exiting Russia as early as September 2023, when top local executives including Eastern Europe Vice President Gleb Kostarev stepped down.

A few weeks later, Binance announced that it had sold all of its Russian business to the newly created exchange CommEx, but refused to reveal any details about the founders or executives of CommEx.

Next, CommEx emphasized that it operates independently from Binance, but acknowledged that some of its core members are former Binance employees.

The secret deal quickly sparked discussion among local crypto enthusiasts who saw many similarities between the websites of Binance and CommEx, calling the new exchange “a Russian version of Binance.US.”

At the time of the sale, Russia was the top market in Binance.com user visits, accounting for 6.9% of total visits.

Related: Facing jail time, ex-Binance CEO hints at new project

The Binance-CommEx deal comes as former Binance CEO Changpeng Zhao and Binance try to convince a US court to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) in June 2023.

The SEC filed a lawsuit against Binance, alleging the exchange offered unregistered securities sales and operating illegally in the United States.

Zhao subsequently resigned from Binance and pleaded guilty in November 2023. He now remains in the US on $175 million bond after a judge denied a request to visit his family in the United Arab Emirates. Originally scheduled for February 2024, Zhao's sentencing was moved to late April.

CommEx's shutdown also comes at a time when many countries are scrutinizing Binance globally. On March 25, the Philippines blocked local users from accessing Binance, citing concerns about the company's unauthorized activities in the country.

Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in.