OKX CEO Star Xu Accuses Former Binance CEO CZ of Misrepresenting Regulatory Risks in Hyperliquid Dispute]
Star Xu, CEO of OKX, has intensified his public criticism of Changpeng “CZ” Zhao, the former CEO of Binance, accusing him of making misleading statements about Hyperliquid’s regulatory situation.
CZ Praises Hyperliquid’s Innovation
The conflict arose from CZ’s recent interview with Alex Thorn, Head of Firmwide Research at Galaxy, where the former Binance CEO commended Hyperliquid for its innovative approach. CZ acknowledged that the protocol has carved out a niche market that Binance cannot easily penetrate.
He noted that Hyperliquid, a high-performance decentralized derivatives protocol, has garnered significant attention, with Cantor Fitzgerald projecting it could reach a $200 billion market cap this year. However, CZ also highlighted the regulatory risks associated with the protocol, particularly its decentralized structure that operates without KYC compliance.
Hyperliquid currently maintains approximately $4.76 billion in open interest on decentralized derivatives exchanges, with a daily trading volume exceeding $8.37 billion. Its spot trading volume stands at roughly $285.98 million, and the HYPE token carries a market capitalization of over $18.72 billion.
Xu Alleges Hypocrisy in CZ’s Position
Star Xu accused CZ of hypocrisy for publicly praising Hyperliquid’s no-KYC, high-leverage derivatives model while simultaneously being aware of its regulatory vulnerabilities. Xu claims Zhao is deliberately misleading the public about these risks.
According to Xu, CZ fully understands the legal challenges facing Hyperliquid but proceeded to launch Aster (ASTER), a protocol that mirrors HYPE’s operational framework. Xu pointed out that Aster shares substantial resources with the Binance ecosystem, including personnel, and that CZ actively promoted the project.
The OKX CEO further alleged that Aster serves as a compliance-facing vehicle for Binance, questioning the purported independence between the two entities. Aster currently shows approximately $942.19 million in open interest on decentralized derivatives platforms, with a daily trading volume of $1.45 billion. The ASTER token has a market capitalization exceeding $1.81 billion.
