Binance provided Russian law enforcement with customer identification documents and transaction records connected to donations supporting Ukrainian military causes. The disclosures helped authorities build a terrorism case against a Russian information technology specialist.
Key Takeaways
Binance provided Russian investigators with a customer’s transaction and identification records.Authorities used the cryptocurrency records to support terrorism charges.CEO Richard Teng said Binance cooperates with authorities even where it has no commercial operations.Investigators alleged that Belenkiy transferred the funds from January 2023 through March 2024 after responding to online appeals from exiled Russian journalist Arkady Babchenko. Authorities said the donations supported Ukrainian forces, including the Azov Brigade, which Russia has designated as a terrorist organization.
Russian law enforcement received customer verification files containing Belenkiy’s phone number, address, passport scan, and Bulgarian residency permit. Case records also included two emails sent to investigators from a Binance address. Belenkiy was arrested in September 2025 and remains imprisoned while awaiting trial.
A Binance spokesperson said the exchange processes formal law enforcement requests under applicable legal, privacy, and regulatory requirements. “Binance does not make or enforce the laws of any jurisdiction, determine charges, or decide how any government uses information in legal proceedings,” the spokesperson stated, adding:
“Like other global financial institutions, we cooperate with lawful information requests from law enforcement globally, subject to applicable legal, privacy and regulatory requirements. Those decisions rest solely with the relevant Authorities.”
Russian Exit Raises Questions About Legal ObligationsBinance’s response revived questions about its continuing obligations in Russia after the company announced its departure from the country in September 2023. Cryptocurrency attorney Mike Bystrov said the exchange had no obligation to comply with requests from Russian authorities after leaving the market.
“Operating globally means engaging with authorities across all jurisdictions, including places where we do not operate commercially. We do not operate in the United States, for instance but we respond to requests from U.S. law enforcement.”
Disclosure Draws European Privacy ConcernsLegal specialists said transferring information concerning a person holding a European Union residency permit to Russian authorities could raise compliance questions under the General Data Protection Regulation. Bystrov said Belenkiy’s Bulgarian residency permit may bring his customer information within the regulation’s protections.
The GDPR does not categorically prohibit transfers to countries without an adequacy decision, but organizations must establish a valid transfer mechanism or satisfy a qualifying exception. Any assessment would depend on Binance’s legal basis for processing the records and the circumstances surrounding their disclosure.
The human rights organization First Department criticized Binance for maintaining communication channels with Russian law enforcement after announcing its market withdrawal. Babchenko also objected to the disclosure, stating:
“It is inappropriate for crypto exchanges to share details of Russian clients’ donations with Russian law enforcement.”
Centralized Exchanges Retain Detailed Customer RecordsRecords in Belenkiy’s case indicate that Binance retained customer information after announcing its departure from Russia. The available documents do not establish how long the exchange plans to retain Russian customer data.
