Binance provided Russian investigators with identity and cryptocurrency transaction records linked to a Russian IT specialist, and the information was later cited in a terrorism financing case, Reuters reported on August 17.
Russian investigators reportedly obtained Yuri Belenkiy’s personal information and Binance transaction history after requesting records from the exchange. The data allegedly showed more than $700 in crypto transfers to wallets linked to fundraising for Ukraine’s military, including one promoted by exiled Kremlin critic Arkady Babchenko.
Investigators also accused Belenkiy of sending funds to a group linked to Ukraine’s Azov Brigade, which Russia designates as a terrorist organization. Reuters said Binance’s transaction records were cited in an interim case document supporting the terrorism financing charges, while Belenkiy remains detained awaiting trial.
‼️ Binance handed over data of a Russian citizen client to Russian law enforcement, which Moscow used to accuse him of financing Ukraine, – Reuters.
Last year, the cryptocurrency exchange Binance handed over to Moscow data on donations made by IT specialist Yuri Belenkiy, who… pic.twitter.com/5xa9STfO2Q
— The Ukrainian Review (@UkrReview) August 17, 2026
Major crypto exchanges take strict approach to sanctioned markets
Major cryptocurrency exchanges generally take a stricter approach to sanctioned and high-risk markets, with measures ranging from blocking users and freezing assets to ending local operations.
US-regulated platforms such as Coinbase and Kraken operate under rules linked to the US Treasury’s Office of Foreign Assets Control (OFAC). They screen customers against sanctions lists and can restrict accounts or transactions connected to sanctioned jurisdictions.
Global exchanges operating across several jurisdictions may take different approaches depending on local laws and regulatory requirements. Their compliance teams typically assess requests from authorities based on applicable laws, privacy rules and sanctions requirements.
Also Read: Binance Introduces New Tier to its Fiat Liquidity Provider Program
In heavily sanctioned countries, domestic crypto platforms can also emerge to serve local users. These exchanges may have closer ties to government authorities and face fewer restrictions from domestic law enforcement.
Did Binance still have obligations after leaving Russia?
Binance said it routinely responds to lawful requests from law enforcement, subject to legal, privacy and regulatory requirements. The exchange declined to discuss Belenkiy’s case specifically.
The development raises questions about how crypto exchanges handle customer information after leaving a market. Binance announced its exit from Russia in 2023, selling its local business to CommEX.
However, leaving a market does not necessarily remove an exchange’s ability to retain historical customer data or respond to legal requests. The specific law supporting Binance’s disclosure remains unclear.
EU privacy rules could affect the case
Belenkiy also holds a Bulgarian residency permit, creating a separate data protection question. If his Binance account was registered as an EU resident, European privacy rules could potentially apply to the transfer of his personal information to Russian authorities.
That would depend on where the account was registered, which Binance entity controlled the data and the legal basis for the disclosure.
Meanwhile, the European Union has agreed on its 21st sanctions package against Russia, adding new restrictions on banks, crypto firms, oil trading platforms and vessels linked to Russia’s shadow fleet.
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