Key facts
- Binance provided Russian authorities with details of cryptocurrency donations made by Yuri Belenkiy.
- The data was used to charge Belenkiy with terrorism financing for sending over $700 to Ukrainian groups.
- Belenkiy is awaiting trial in Russia.
- Legal experts suggest Binance's actions may have violated EU data protection laws, such as GDPR.
- Binance stated it cooperates with lawful information requests globally.
Binance, the world's largest cryptocurrency exchange, reportedly provided Russian authorities with details of cryptocurrency donations made by a Russian IT specialist, Yuri Belenkiy. These details were subsequently used as evidence to bring terrorism financing charges against Belenkiy, who allegedly sent over $700 to Ukrainian groups, including the Azov Regiment, which Moscow designates as a terrorist organization.
Documents obtained by Reuters indicate that Russian law enforcement requested Belenkiy's transaction history from Binance, and the exchange responded by sending information showing crypto transfers to Ukrainian organizations. This information was incorporated into the case against Belenkiy, with the Investigative Committee citing the transactions as grounds for the charges.
Legal experts, such as Mike Bystrov, founder of Stellar Consulting, suggest that Binance may have violated EU data protection laws, including GDPR, by sharing Belenkiy's data with Russia, especially given his residency in Bulgaria. GDPR generally prohibits the disclosure of personal data to countries not deemed to have an adequate level of data protection without stringent compliance measures.
Binance, however, disputes this view, stating that it cooperates with lawful information requests from law enforcement globally, subject to applicable legal, privacy, and regulatory requirements. The exchange also announced in 2023 that it had fully exited Russia, asserting that operating in the country was not compatible with its compliance strategy.
The European Data Protection Board declined to comment on the case, and the Commission for Personal Data Protection in Bulgaria did not respond to inquiries about potential breaches of data protection laws. Belenkiy, who holds a Russian passport and Bulgarian residency, is currently in a Russian jail awaiting trial. Reuters could not independently confirm the source of the documents or determine if other individuals who made donations via crypto have been drawn into the investigation.