Binance Hands Over Client Data to Russian Authorities Amid Terrorism Financing Probe

Binance, one of the world's largest cryptocurrency exchanges, has come under fire for providing client data to Russian authorities in a high-profile case involving alleged terrorism financing. According to reports, Binance handed over personal information and transaction history of DiHouse's IT director, Yuriy Belenky, in 2025.

Belenky was initially detained on charges of hooliganism but later reclassified as terrorism financing. He was accused of making six cryptocurrency transfers totaling $742.26 in favor of the Armed Forces of Ukraine and the Azov Regiment. The investigation claimed that these funds were sent to the wallet of journalist Arkadiy Babchenko, who denied receiving donations from Belenky or Russian citizens.

After receiving additional data from Binance, the number of transactions increased to 15, with a total amount of $1680.69 in transfers. The case also included transactions to the Ukrainian organization 'Sprava Hromad' and the Kuna cryptocurrency exchange. Lawyers argue that Binance was not obligated to provide this data as it had officially exited the Russian market in September 2023.

Binance's decision has sparked controversy, with some criticizing the exchange for cooperating with Russian authorities despite its claims of withdrawing from the market. The company maintains that it cooperates with law enforcement agencies worldwide within the framework of legitimate information requests.