- Zhao praised Hyperliquid’s technology but said Binance cannot adopt its no-KYC model.
- Star Xu challenged CZ’s comments, arguing Binance-linked Aster operates similarly to Hyperliquid.
- CZ confirmed Aster employs former Binance staff, while YZi Labs holds a minority stake in the project.
A fresh dispute has broken out between OKX founder Star Xu and Binance founder Changpeng Zhao after comments made by CZ about Hyperliquid.
During a recent interview, Zhao praised Hyperliquid’s technology and called the platform an important innovation. At the same time, he said Binance could not follow the same path because Hyperliquid operates without KYC checks and faces legal and regulatory risks.
CZ said Hyperliquid serves a market Binance cannot compete in and added that the platform likely has strong legal advisors. Star Xu quickly challenged those remarks.
In a post on X, he accused Zhao of sending mixed messages and questioned whether he was misleading the public again. Xu argued that Aster, a decentralized perpetual exchange backed by entities linked to Binance, appears to follow almost the same model as Hyperliquid.
Aster Connections Becomes a Target
Star Xu said Aster shares resources and personnel with the wider Binance ecosystem and noted that CZ has promoted the platform several times.
He questioned how Aster could be viewed differently if the business model, incentives, people, and infrastructure largely overlap with Hyperliquid. Xu added that creating a separate entity could be a way to remain compliant while still participating in the same market.
The claim that Aster is merely a shell has not been independently established. However, several ties between Binance-linked entities and Aster are public.
CZ previously confirmed that Aster employs former Binance staff. YZi Labs, formerly known as Binance Labs, owns a minority stake in the project and lists Aster among its investments.
Aster has grown into one of Hyperliquid’s main competitors by combining non-custodial perpetual trading with BNB Chain distribution and token incentives. At one point, the platform’s total value locked exceeded $2 billion.
Another Round in an Old Rivalry
The latest exchange comes only months after the two founders publicly attacked each other over issues dating back to CZ’s time at OKCoin more than a decade ago.
Their April dispute escalated into accusations of dishonesty and contract fraud. Zhao even offered a $1 billion bet to defend claims made in his prison memoir, Freedom of Money. Star Xu rejected the proposal and criticized such behavior from the owner of a regulated company.
Related: Changpeng Zhao Says He Sold $900K Apartment to Buy Bitcoin for Around $400 Without a Job
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