Binance Accused of Handing Over Client Data to Russian Security Forces

Binance has been accused of providing transaction data and personal information of Yuri Belenky, a Russian IT specialist, to security forces in Ukraine. According to Reuters, Binance responded to requests from the Investigative Committee with client data, including a European residence permit. This raises concerns about the exchange's cooperation with law enforcement agencies worldwide.

The case dates back to 2023 when Belenky transferred USDT to Ukrainian military and the Azov regiment, which Russian authorities consider a terrorist organization. Binance had already left Russia in September 2023 but still provided data to the security forces, despite being under no obligation to do so.

Lawyer Mike Bystrov noted that if Belenky registered his account as an EU resident with his Bulgarian residence permit, transferring his data to Russia could fall under European data protection regulation restrictions. The incident highlights the complexities of cryptocurrency services operating in a global field with varying regulatory standards.