Cryptocurrency exchange Binance handed over personal and transaction data of a client who donated to Ukrainian military forces to Russian law enforcement officers.
The information provided by the exchange was used as primary evidence in a criminal terrorism financing case against 49-year-old Russian IT specialist Yuriy Bielenkyi, an investigation by Reuters revealed.
Bielenkyi, who holds a Russian passport alongside a residency permit in Bulgaria, was arrested in September 2025 and remains in a Russian pre-trial detention center awaiting trial. Russian investigators with the Investigative Committee claim he transferred more than $700 in cryptocurrency between January 2023 and March 2024 to support Ukrainian military forces, including the Azov unit, which Moscow classifies as a terrorist organization.
Personal details provided to Russian investigators
Official law enforcement files obtained by Reuters show that Russian investigators formally requested Bielenkyi's full transaction history from Binance. The cryptocurrency exchange complied by sending a detailed dossier confirming his financial transfers.
The material supplied to Russian authorities extended beyond simple transfer records. The file transmitted by Binance included Bielenkyi's date of birth, residential address, telephone number, passport details, a copy of his Russian passport, and a copy of his Bulgarian residence permit.
Russian prosecutors incorporated these records directly into the official prosecution files. A document prepared for the General Prosecutor's Office of the Russian Federation cited the Binance records as the legal foundation for charging Bielenkyi with financing terrorism.
Regulatory questions and market withdrawal
The disclosure has raised sharp questions regarding Binance's legal obligations and operations. Binance announced a complete withdrawal from the Russian market in September 2023, declaring at the time that continuing business in Russia was incompatible with its global regulatory compliance strategy.
Crypto regulation lawyer Mike Bystrov told Reuters that Binance may not have been legally required to turn over the records to Russian authorities. Bystrov explained that if Bielenkyi was registered as a European Union resident, his personal data should have been protected under the European Union General Data Protection Regulation.
Bystrov noted that the European Union does not recognize Russia as a nation with adequate personal data protection standards, making any data transfers to Russian authorities a very sensitive legal matter.
Exchange response and wider investigation
Binance rejected assertions that it should have turned down the request from Russian investigators. In a statement, the company said that like other global financial institutions, it responds to legitimate requests from law enforcement agencies worldwide in compliance with applicable laws, privacy rules, and regulatory requirements.
The exchange added that it does not determine the criminal charges filed by law enforcement nor does it control how sovereign governments utilize provided information during legal proceedings.
Reuters reported that Russian investigators also asked Binance to reveal the identities of other individuals who sent funds to a cryptocurrency wallet promoted by Russian opposition activist Arkady Babchenko. Case documents did not indicate whether Binance fulfilled that specific request.
Reuters was unable to confirm whether Binance identified additional Russian citizens who made crypto donations to Ukraine. However, human rights advocates tracking political prosecutions reported that Russian courts have convicted dozens of citizens in recent years for making financial contributions to Ukrainian causes.
Binance also restricted new user registrations and services for residents across the European Union starting July 1 under the Markets in Crypto-Assets framework, after failing to secure regulatory approval from an EU member state.
