Binance founder Changpeng Zhao (CZ) praised Hyperliquid’s innovation in a preview clip from his Galaxy Brains interview, calling it “actually awesome” and admitting that the decentralized exchange occupies a niche that Binance simply cannot compete in.
But within hours, OKX founder and CEO Star Xu fired back with a pointed question: Is CZ lying to the public again?
What CZ said about Hyperliquid
In the clip shared by Galaxy Digital’s Alex Thorn on X, CZ acknowledged that Hyperliquid’s permissionless, no-KYC trading model gives it a unique edge in the decentralized perpetual futures space.
He said Binance cannot compete because the platform lets anyone trade without identity verification. But he was quick to distance himself from the approach, stating that he would never operate a platform that way given what he has experienced with regulators. He also added that Hyperliquid’s team must have good lawyers, given the legal risks involved.
CZ pleaded guilty in 2023 to failing to maintain an effective anti-money laundering program at Binance and served a four-month prison sentence in 2024. His comments about Hyperliquid appeared to be shaped by that experience, framing the no-KYC model as a regulatory liability he personally would not take on.
Star Xu’s sharp response
OKX founder Star Xu did not let the remarks go unchallenged. In a post on X, Xu accused CZ of hypocrisy, pointing to Aster DEX as evidence that the Binance founder’s words do not match his actions.
Xu wrote that Aster, a decentralized perpetual exchange, appears to copy Hyperliquid’s model “almost exactly” while operating as a separate shell entity. He highlighted that Aster reportedly shares significant resources with the Binance ecosystem, including team members, and that CZ himself has promoted the project multiple times.
Xu posed a direct question: if the business model, resources, people, and incentives are largely the same, how different is Aster from what CZ claims he would never build?
Xu also suggested that creating a separate shell might be CZ’s way of staying “compliant” while still pursuing the exact market opportunity he publicly says he would avoid.
The Aster connection
The ties between CZ and Aster are well documented. Aster was formed in March 2025 through the merger of APX Finance and Astherus, with backing from YZi Labs, the investment firm formerly known as Binance Labs.
CZ has previously confirmed that Aster employs former Binance personnel and that YZi Labs holds a minority stake in the project. He has described himself as an advisor focused on product and technology rather than a direct team member.
The platform surged rapidly after launch, with its ASTER token jumping from $0.08 to over $1 within 24 hours of its token generation event in September 2025. At its peak, Aster crossed $2 billion in total value locked, positioning itself as the most visible challenger to Hyperliquid in the onchain perpetual futures market.
Read: OKX Founder Star Xu Fires Back at CZ After Interview: ‘I’m Not Jealous, I’m Ashamed of Him’
The bigger picture
This public clash comes at a time when the decentralized perpetual futures space is heating up fast. Hyperliquid’s share of global perpetual open interest recently hit a record 8.3%, putting its fully onchain order book in direct competition with centralized exchanges that run large compliance teams and restrict access by jurisdiction.
Star Xu has his own history with this space. He previously revealed that OKX Web3 had been testing a Hyperliquid-style DEX product since 2023 but chose not to launch the mainnet due to regulatory concerns. That restraint now serves as the backdrop for his criticism of CZ, essentially asking why Binance’s founder gets to praise compliance while backing a project that arguably sidesteps it.
The exchange of posts has not led to a direct response from CZ at the time of writing.
Also Read: HYPE Token Smashes New ATH as Hyperliquid Gains Ground on Binance
