Binance Handover of Ukraine Donor Data Sparks Compliance Concerns

Binance, the world's largest cryptocurrency exchange by trading volume, has come under scrutiny after providing Russian authorities with information on cryptocurrency donations made to Ukrainian fundraising campaigns. According to law enforcement documents, Binance provided this data despite having announced in 2023 that it had fully exited the Russian market.

The disclosure came to light as part of a terrorism financing case against a Russian IT specialist, Yuri Belenkiy, who was detained in September 2025. Russia's Investigative Committee alleged that Belenkiy had transferred over $700 to the Ukrainian military and a related group formerly known as the Azov Brigade, which has been designated as a terrorist organization.

Mike Bystrov, founder of law firm Stellar Consulting, questioned Binance's decision to provide the data after leaving Russia, citing European Union data protection law. However, Binance disputed this assessment, stating that it cooperates with lawful information requests from law enforcement globally, subject to applicable legal and regulatory requirements.