Binance's Russia Exit: A Contradictory Policy on Customer Data

Binance claims to have left Russia in 2023 after selling its Russian arm to CommEX, but new documents reveal that Moscow investigators were still able to obtain a customer's records from the exchange. The records, which include passport scans and trading histories, became evidence in a terrorism financing case against Yuri Belenkiy.

Binance had disclosed 1,094 requests from Russian law enforcement between April 2020 and 2022, but its own rules require a valid court order or police warrant before handing over user data. The exchange claimed it needed no such order in this instance, instead providing the records directly to investigators.

The case highlights Binance's continued cooperation with Russian authorities despite its claims of leaving the market. While selling a subsidiary does not delete existing customer data, the lack of transparency and adherence to its own rules has sparked concerns about user privacy and compliance.