OKX founder Star Xu has publicly challenged Binance founder Changpeng Zhao over his support for Aster, pushing a fresh debate over decentralized exchange structures and regulatory limits. The dispute followed Zhao’s interview with Galaxy Digital Head of Research Alex Thorn, where he described Hyperliquid as an impressive decentralized exchange innovation and said Binance could not compete with it because the platform operates without KYC requirements.
CZ praised the model but said Binance could not use it
Zhao said KYC rules are part of how centralized exchanges meet anti-money laundering obligations. Based on his own past regulatory experience, he said he would not run a platform in the same way. His remarks drew attention back to Binance’s 2023 settlement and $4 billion fine, where weak anti-money laundering controls were among the concerns. Zhao also said Hyperliquid likely has strong legal advisers given the way it operates.
Star Xu asked whether Aster follows a similar path through a separate structure
Xu responded in a post on X, questioning whether Zhao was sending mixed signals on decentralized exchange models. He argued that Aster appears to mirror Hyperliquid’s approach while maintaining ties to the Binance ecosystem. Xu pointed to reported connections involving resources, team members, and Zhao’s public promotion of Aster.
He also raised a sharper question: can a separate entity use a similar business structure while easing regulatory pressure. At the same time, the report noted that the claim Aster is merely a shell entity has not been independently confirmed.
Public records show links between Aster and Binance-related entities
Available public information indicates that some ties do exist between Aster and Binance-linked entities. Zhao had previously confirmed that former Binance employees work at Aster. YZi Labs, formerly known as Binance Labs, holds a minority stake in the project and lists Aster as one of its investments.
Aster has grown into a competitor in perpetual trading. The platform combines non-custodial trading, BNB Chain distribution, and token incentives, and its total value locked previously rose above $2 billion.
A longer rivalry now overlaps with the DEX compliance debate
The latest exchange adds to a dispute between Zhao and Xu that has stretched on for years, including accusations linked to Zhao’s earlier time at OKCoin. In April, the conflict widened into claims about honesty and contract issues. Zhao later proposed a $1 billion bet tied to statements in his prison memoir, “Freedom of Money,” and Xu declined.
Hyperliquid, for its part, has also taken steps toward policy engagement. The platform set up the Hyperliquid Policy Center to take part in regulatory discussions and has started restricting sanctioned entities. That leaves the current dispute centered on one issue: where the line sits between no-KYC decentralized trading venues and regulated centralized exchanges, and whether similar business models are treated differently when they operate through different legal structures.