Binance Handovers Customer Data to Russia Amid Terrorism Financing Charges
Binance, one of the largest cryptocurrency exchanges in the world, has provided Russian authorities with personal information and transaction records belonging to a customer who was later charged with terrorism financing over donations linked to Ukraine. The case involves Yuri Belenkiy, a 49-year-old Russian IT specialist who holds a Bulgarian residency permit and is currently jailed in Russia awaiting trial.
Russian investigators alleged that Belenkiy transferred more than $700 in cryptocurrency to fundraising efforts supporting the Ukrainian military and a group associated with the Azov Brigade, which Moscow designates as a terrorist organization. Reuters reported that Russian authorities requested Belenkiy's transaction history from Binance and received information confirming his transfers.
The data provided by Binance went beyond transaction records, including Belenkiy's date of birth, address, telephone number, and passport number, along with copies of his Russian passport and Bulgarian residency permit. The exchange said it cooperates with lawful information requests from law enforcement agencies around the world, subject to relevant legal, privacy, and regulatory requirements.
The company has processed over 71,000 law enforcement requests and regularly assists authorities with investigations into illicit cryptocurrency activity. However, the Russian case raises questions about European privacy law because of Belenkiy's residency in Bulgaria. Mike Bystrov, founder of crypto regulation consultancy Stellar Consulting, stated that Belenkiy could potentially have been protected by the European Union's General Data Protection Regulation if he was registered with Binance as an EU resident.