Binance has shared customer data with Russian authorities, despite announcing its departure from the market in 2023. The exchange provided Russian law enforcement with customer identification documents and transaction records connected to donations supporting Ukrainian military causes. This data was used to build a terrorism case against a Russian information technology specialist, Yuri Belenkiy, who allegedly sent over $700 in cryptocurrency to Ukrainian fundraising campaigns.
Customer Data Disclosure
Binance disclosed customer verification files containing Belenkiy's phone number, address, passport scan, and Bulgarian residency permit. The exchange also sent two emails to investigators from a Binance address. A Binance spokesperson stated that the exchange processes formal law enforcement requests under applicable legal, privacy, and regulatory requirements.
Regulatory Compliance
The disclosure has raised questions about Binance's obligations in Russia after its departure. Cryptocurrency attorney Mike Bystrov said the exchange had no obligation to comply with requests from Russian authorities after leaving the market. Binance CEO Richard Teng addressed the dispute, stating that the exchange follows lawful procedures worldwide and works with authorities even in countries where it has no commercial operations.
Previous Scrutiny
Binance has faced extensive scrutiny over its compliance controls in other jurisdictions. The exchange pleaded guilty to federal charges in 2023 and agreed to a $4.3 billion settlement with the U.S. Justice Department involving anti-money laundering, sanctions, and money-transmission violations.
GDPR Compliance
Transferring information concerning a person holding a European Union residency permit to Russian authorities could raise compliance questions under the General Data Protection Regulation. Legal specialists said any assessment would depend on Binance's legal basis for processing the records and the circumstances surrounding their disclosure.