CZ praised Hyperliquid’s non-KYC decentralized model, calling it innovative but incompatible with centralized exchange regulation. Star Xu questioned whether Aster mirrors Hyperliquid while m
A public dispute has emerged between Binance founder Changpeng Zhao and OKX founder Star Xu over decentralized exchanges and regulatory risks. Xu questioned Zhao’s support for Aster after CZ praised Hyperliquid during an interview. The debate focused on whether Aster follows a similar model while operating through separate structures.
During an interview with Galaxy Digital Head of Research Alex Thorn, CZ described Hyperliquid as an impressive decentralized exchange innovation. He said Binance could not compete with Hyperliquid because the platform operates without KYC requirements.
CZ explained that KYC rules help centralized exchanges meet anti-money laundering requirements. He added that he would not operate in the same way, based on his previous regulatory experience.
The comments referenced Binance’s 2023 settlement, which involved a $4 billion fine and concerns over weak anti-money laundering controls. CZ said Hyperliquid likely has strong legal advisers because of its operating model.
However, OKX founder Star Xu challenged CZ’s statements through a post on X. Xu asked whether CZ was giving conflicting messages about decentralized exchange structures.
Xu claimed Aster appears to copy Hyperliquid’s model while sharing connections with the Binance ecosystem. He pointed to reported links involving resources, team members, and CZ’s public promotion of Aster.
Xu questioned whether creating a separate entity could allow a similar business approach while addressing regulatory concerns. However, the claim that Aster is only a shell has not been independently confirmed.
Public information shows some connections between Aster and Binance-related entities. CZ previously confirmed that former Binance employees work at Aster. YZi Labs, formerly Binance Labs, holds a minority stake and lists Aster as an investment.
Aster has developed as a competitor in perpetual trading. The platform combines non-custodial trading with BNB Chain distribution and token incentives. Its total value locked previously exceeded $2 billion.
The disagreement adds to a long-running dispute between CZ and Star Xu. The two founders have exchanged accusations linked to events from CZ’s earlier time at OKCoin.
In April, their dispute expanded into claims involving honesty and contract issues. CZ later offered a $1 billion bet related to statements from his prison memoir, “Freedom of Money.” Xu rejected the proposal.
Meanwhile, Hyperliquid has created the Hyperliquid Policy Center to support regulatory discussions. The platform has also started restricting sanctioned entities.
CZ’s comments placed attention on the differences between decentralized exchanges and regulated centralized platforms. Xu’s response focused on whether similar models can operate through different structures.
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