In August 2026, it was revealed that the world's largest cryptocurrency exchange, Binance, provided Russian law enforcement agencies with data on transactions by Russian citizens who made donations to the Armed Forces of Ukraine (AFU). This information was used by the Russian Investigative Committee to file criminal cases against several individuals accused of financing "terrorist activities."
How Binance ended up at the center of the scandal
According to sources, in October 2025, the Russian Investigative Committee detained IT specialist Yuri Belenky, who transferred more than $700 to the accounts of Ukrainian soldiers from the "Azov" battalion. Information obtained from Binance played a key role in uncovering this case. Despite the company claiming to have fully exited the Russian market back in 2023, it continued to cooperate with Russian authorities as part of international requests.
Binance's legal position: "We do not determine charges"
A Binance representative emphasized in a comment that the company does not establish or enforce the laws of any jurisdiction, does not determine charges, and does not decide how any government uses information in legal proceedings. According to the representative, Binance, like other international financial institutions, cooperates with law enforcement agencies in various countries and responds to lawful requests for information in accordance with current legal, confidentiality, and regulatory requirements.
Contradictory data
Lawyer Mike Bystrov, commenting on the situation, stated that after exiting the Russian market, Binance was not obliged to transfer such data to Moscow. Furthermore, under EU data protection legislation, the company might have been obliged not to do so. However, Binance insists that its actions were legal and in line with international standards for interaction with law enforcement agencies.
Consequences for Russian citizens
Human rights defenders report that in recent years, dozens of Russians who made crypto donations to initiatives later declared extremist or terrorist by Moscow have been held accountable and convicted. The exact number of such people is currently unknown, but it is known that many of them used cryptocurrency exchanges, including Binance, to conduct transactions.
International context and sanctions
The situation with Binance and the transfer of data to Russian authorities is taking place against the backdrop of intensified cryptocurrency sanctions by Western countries against Russia. Recently, it was reported that the UK introduced new sanctions aimed at limiting the use of cryptocurrencies to bypass financial restrictions. Also, for the first time in Ukraine, cryptocurrency seized from hackers was transferred to the state, setting a precedent in the fight against cybercrime.
Conclusions and prospects
The scandal surrounding Binance and the transfer of data to Russian authorities highlights the complexity of the legal regulation of cryptocurrencies in the context of geopolitical tension. The company found itself at the center of a conflict between international data protection standards and the requirements of national legislations. In the future, one can expect increased pressure on cryptocurrency exchanges from states seeking to control financial flows in the context of conflict.
