Key Takeaways
- Binance provided Russian investigators with a customer’s transaction and identification records.
- Authorities used the cryptocurrency records to support terrorism charges.
- CEO Richard Teng said Binance cooperates with authorities even where it has no commercial operations.
Binance Data Supports Terrorism Case
Russia’s Investigative Committee used account data provided by Binance to build a terrorism case against 49-year-old information technology specialist Yuri Belenkiy, according to records reviewed by Reuters. The case concerns more than $700 in cryptocurrency that Belenkiy allegedly sent to Ukrainian fundraising campaigns.
Investigators alleged that Belenkiy transferred the funds from January 2023 through March 2024 after responding to online appeals from exiled Russian journalist Arkady Babchenko. Authorities said the donations supported Ukrainian forces, including the Azov Brigade, which Russia has designated as a terrorist organization.
Russian law enforcement received customer verification files containing Belenkiy’s phone number, address, passport scan, and Bulgarian residency permit. Case records also included two emails sent to investigators from a Binance address. Belenkiy was arrested in September 2025 and remains imprisoned while awaiting trial.
A Binance spokesperson said the exchange processes formal law enforcement requests under applicable legal, privacy, and regulatory requirements. “Binance does not make or enforce the laws of any jurisdiction, determine charges, or decide how any government uses information in legal proceedings,” the spokesperson stated, adding:
“Like other global financial institutions, we cooperate with lawful information requests from law enforcement globally, subject to applicable legal, privacy and regulatory requirements. Those decisions rest solely with the relevant Authorities.”
Russian Exit Raises Questions About Legal Obligations
Binance’s response revived questions about its continuing obligations in Russia after the company announced its departure from the country in September 2023. Cryptocurrency attorney Mike Bystrov said the exchange had no obligation to comply with requests from Russian authorities after leaving the market.
Binance CEO Richard Teng addressed the dispute in an Aug. 17 thread on X, saying the exchange follows lawful, structured procedures worldwide and works with authorities even in countries where it has no commercial operations. He said cooperation should not be interpreted as partiality toward any government and added that Binance reviews requests for compliance with applicable sanctions and legal, privacy, and regulatory requirements. Teng stated:
“Operating globally means engaging with authorities across all jurisdictions, including places where we do not operate commercially. We do not operate in the United States, for instance but we respond to requests from U.S. law enforcement.”
The exchange previously faced extensive scrutiny over its compliance controls in other jurisdictions. Binance pleaded guilty to federal charges in 2023 and agreed to a $4.3 billion settlement with the U.S. Justice Department involving anti-money laundering, sanctions, and money-transmission violations.
The U.S. Treasury Department separately detailed Binance’s failures to prevent and report prohibited transactions involving sanctioned jurisdictions and individuals. Those enforcement measures concerned transaction monitoring and prohibited financial activity, not Binance’s handling of Russian law enforcement requests.
Binance announced its departure from Russia and sale of its local business to Commex in September 2023. The exchange said its complete departure could take up to one year as customers were transferred to the new platform.
Disclosure Draws European Privacy Concerns
Legal specialists said transferring information concerning a person holding a European Union residency permit to Russian authorities could raise compliance questions under the General Data Protection Regulation. Bystrov said Belenkiy’s Bulgarian residency permit may bring his customer information within the regulation’s protections.
The GDPR does not categorically prohibit transfers to countries without an adequacy decision, but organizations must establish a valid transfer mechanism or satisfy a qualifying exception. Any assessment would depend on Binance’s legal basis for processing the records and the circumstances surrounding their disclosure.
The exchange has faced similar allegations involving Russian authorities. An earlier account of Binance’s data-sharing practices said the company’s regional intelligence operation maintained ties with Russia’s financial intelligence agency while the government sought information about political opponents. Binance disputed elements of that account.
The human rights organization First Department criticized Binance for maintaining communication channels with Russian law enforcement after announcing its market withdrawal. Babchenko also objected to the disclosure, stating:
“It is inappropriate for crypto exchanges to share details of Russian clients’ donations with Russian law enforcement.”
Centralized Exchanges Retain Detailed Customer Records
Centralized cryptocurrency exchanges generally collect identity documents and transaction information to satisfy know-your-customer and anti-money laundering requirements. These records can include government identification, addresses, contact details, account activity, and information about the source or destination of funds.
The Investigative Committee also asked Binance to identify other customers who donated to wallets associated with Babchenko’s campaigns. Binance had previously restricted services for certain Russian customers after the European Union expanded sanctions targeting Russia.
Records in Belenkiy’s case indicate that Binance retained customer information after announcing its departure from Russia. The available documents do not establish how long the exchange plans to retain Russian customer data.
The case also highlights the distinction between centralized accounts and self-hosted wallets. With self-custody, users control the private keys needed to authorize transactions, while centralized platforms control account infrastructure and retain customer records. Rights advocates said dozens of Russians have faced prosecution over cryptocurrency donations sent to Ukraine-aligned organizations.
