Back to blog
The End of Commex: The Problem and Solution
Uruba Niazi

VP of Marketing - Content

26 Mar 2024
2 min read

The announcement of CommEX closing its exchange is the symptom of an old problem that has haunted DeFi from the start. Users lose the control over their funds and become unprotected in the financial market. What is this old reason and what can solve it?

CommEX: The Problem

CommEX, short for "Community Exchange," entered the crypto scene in 2023 with the acquisition of Binance’s Russian business on September 27, 2023. The acquisition came after Binance planned to exit the Russian market fully due to Western sanctions against Russia. This also coincides with the ongoing investigation into a case filed by the SEC in the US against Binance in June 2023 for the sale of unregistered securities and operations illegally in the US. The acquisition by CommEX was done promptly with the gradual sunsetting and migration of Binance’s holdings to CommEX.

As regulatory scrutiny intensified, CommEX struggled to address mounting concerns and provide satisfactory explanations to its users. Last week, the exchange announced its closure, citing mounting legal challenges and dwindling user confidence. In a statement on its website, the exchange cited "unforeseen regulatory hurdles" and "financial constraints" as the primary reasons for its decision.

Per the suspension roadmap, CommEx will cease futures trading services on March 28 and commence the suspension of peer-to-peer exchange activities on April 2. By April 23, CommEx intends to close down its spot trading platform fully and suspend its website operations by May 10. The announcement notes that “User accounts that retain assets after May 10, 2024, will be subject to an asset management fee of 1% of assets.” This means that not only will users lose access to their funds if they do not act within this timeline, but they will incur more fees on their own money.

This announcement has already caused a mass exodus, and users have seen long delays and high fees for retrieving their funds. The backlog of transactions and the exchange's almost total lack of accountability leave the crypto community feeling insecure and cheated by DeFi Solutions as a whole.


The pitfall that seems to engulf exchanges is the constraints of a decentralized solution’s operating structure, which starts with security, asset custody, regulations, scalability, and user experience.

​​Decentralized systems are not immune to security vulnerabilities. The distributed nature of these solutions can sometimes exacerbate security risks. Smart contract vulnerabilities, consensus protocol attacks, and governance exploits are security challenges facing decentralized platforms. Users lose control and ownership when they send their funds to an exchange. If the exchange shuts its doors or has a breach, it cannot guarantee your funds will be returned. Decentralized platforms can be challenging due to complex onboarding processes, slower transaction times, and other usability issues. Finding a balance between the benefits of decentralization and a seamless user experience remains a significant challenge for many projects.

All these ailments sound a lot like the problems of traditional banking. The kind of problems that cryptocurrency was built to solve. So how does this qualify as an improvement? And why shouldn’t users abandon such projects that fail to deliver on these promises?

The CrossFi Solution

Cross Finance offers a unique solution for DeFi users. It starts with a Layer 1 blockchain, a modular architecture consisting of Cosmos Tendermint and Ethereum Virtual Machine, which work together to power interoperability, scalability, and functionality. The apps and dApps built on the CrossFi Chain are lightning-fast and immune to market fluctuations or high volume of users. Most importantly, our solutions integrate directly with your non-custodial wallet like a MetaMask, so you never lose control over your assets. Our apps and a physical card will directly link to a non-custodial wallet and always charge a flat fee for every transaction. CrossFi has compliant KYC and onboarding processes, making it easy for users to use all our cross-border services.

“Cross Finance is a financial instrument available to every user. Only the user can manage, control, and dispose of his funds. In Cross Finance, users' assets will never be blocked or withdrawn from users.”

Alexander Mamasidikov

CEO, Chief ideologist & coordinator of the team

Moving Forward

While CommEX's closure may have left many with a bitter taste, it also serves as an opportunity for reflection and improvement within the crypto community. More than ever, genuinely decentralized solutions backed by robust technology like the CrossFi Chain and dApps are needed—solutions that can pass regulatory scrutiny while providing trusted and fast services to users.

In conclusion, the rise and fall of CommEX underscore the inherent challenges and risks associated with the cryptocurrency market. It's a stark reminder that success in this space depends on ethical conduct, regulatory adherence, and unwavering commitment to user protection. As the industry evolves, lessons must be learned, mistakes must be acknowledged, and measures must be taken to ensure a safer and more resilient ecosystem.


Show more (0)
for subscribing

You will receive only the most interesting news from the world of finance

Read our blog
.01you may also like
Exploring the Progress of Cryptocurrency in Asia This blog takes a deep dive into the Asian crypto market and its current state. We discuss progress being made on the adoption and regulation fronts and how each country is navigating the process of i... 22 Mar 2024 • 2 min read
Unleashing the Power of Web3 Banking: A Conversation with Fedor Bogorodskiy, CFO at Cross Finance Join us for an interview with Fedor Bogorodskiy, CFO at Cross Finance, as he takes us through the groundbreaking CrossFi APP. Gain insights into the unique features and banking products offered by Cro... 19 Mar 2024 • 2 min read
CrossFi Chain Testnet
3 Key Steps Validators Should Take During the User Initiative On Saturday, 16/03/24, the third stage of the CrossFi Chain EVM Testnet commenced - an Initiative for users with a total grant pool of $2,000,000 in MPX coins. The first week of the Testnet Initiative... 18 Mar 2024 • 2 min read
CrossFi Chain Testnet
How to Join Public CrossFi Chain Testnet On March 15th, the CrossFi team announced the launch of the third initiative for users as part of the CrossFi Chain EVM Testnet program with a total reward pool of $2,000,000 in MPX coins. 15 Mar 2024 • 2 min read
CrossFi Chain Testnet
How to obtain a grant for developers? 5 tips from the CrossFi team On March 11th, the CrossFi team announced the launch of the second initiative for developers as part of the CrossFi Chain EVM Testnet program. This initiative aims to empower developers with a robust ... 13 Mar 2024 • 3 min read
Cross Finance
Everything You Need to Know About Cross Finance Ecosystem 11 Mar 2024 • 3 min read
CrossFi Chain Testnet
9 Steps Guide for Validators to Obtain a Grant Incentives for validators in the CrossFi Chain Testnet are primarily designed to ensure uninterrupted and decentralized operation of the blockchain. These incentives play a crucial role in motivating ... 07 Mar 2024 • 2 min read
CrossFi Chain Testnet
CrossFi Chain EVM Tesnet in 2 weeks 06 Mar 2024 • 1 min read
CrossFi Analysis: DeFi Trends of 2024 04 Mar 2024 • 2 min read
10 Key Business Insights and Trends from NFT Paris 2024 The recent NFT Paris 2024 event was a melting pot of innovation, art, and technology, bringing together enthusiasts, creators, and business leaders from around the globe. As an advisor for CrossFI, I ... 27 Feb 2024 • 2 min read
CrossFi Chain Testnet
4 Incentivized Ways to Make Money with CrossFi at Your Fingertips Here is a look at the most lucrative incentives that have earned our users much coin! (Pun intended.) 12 Jul 2024 • 3 min read
CrossFi Chain Testnet
Dex Guru demos tools for success in upcoming CrossFi Hackathon Here is a short synopsis of what was discussed in the partner workshop with Dex Guru’s Evengy and a video of the workshop itself. 02 Jul 2024 • 3 min read
CrossFi & DChain: Powering the Future of Web3 Gaming In a significant move to enhance the blockchain gaming ecosystem, CrossFi and DChain have announced a strategic partnership that promises to bring innovative solutions to the Web3 gaming space. 25 Jun 2024 • 1 min read
CrossFi Chain Testnet
Leading Validators Thrive on CrossFi Testnet: A New Era of Blockchain Success These narratives are a testament to the hard work and perseverance of our validators, who have navigated a challenging path to contribute to the growth and stability of the CrossFi ecosystem. 21 Jun 2024 • 5 min read
10 Key Strategic Insights from CrossFi at the Proof of Talk Web3 Conference in Paris CrossFi, a frontrunner in the cross-chain DeFi space, was thrilled to participate in the Proof of Talk Web3 Conference in Paris, 10-11 June 2024. The conference was an impressive gathering of visionar... 13 Jun 2024 • 3 min read
Key Takeaways From Money 20/20 Europe in Amsterdam 2024 We attended Money 20/20 Europe in Amsterdam to get a pulse on the industry. Here are the key takeaways and insights we gained from the conference. 12 Jun 2024 • 3 min read
CrossFi Wins The Best All-In-One Blockchain Payment Solution in Americas Region Exciting News! 11 Jun 2024 • 1 min read
Cross Finance CrossFi Chain Testnet
How To Earn Crypto With CrossFi? If you aim to earn crypto, you have come to the right place. The CrossFi ecosystem is designed to reward users for participating and contributing to the platform. This post will describe how you can e... 06 Jun 2024 • 3 min read
CrossFi Chain Testnet
Why Should Everyone Try CrossFi Testnet Now? Welcome to the world of CrossFi, where innovative DeFi solutions, exciting gaming experiences, and cutting-edge trading platforms converge. Our suite of products, including the xApp, BingoRingo, and x... 06 Jun 2024 • 3 min read
CrossFi and Versus-X Partnership CrossFi announces its strategic partnership with Versus-X, a multi-token and cross-chain wagering gaming studio. This collaboration will leverage the strengths of both platforms and bring about innova... 05 Jun 2024 • 2 min read