Binance has come under scrutiny after reports revealed it shared customer data with Russian authorities even after announcing its exit from the market in 2023.
The exchange’s disclosures, which included identity documents and transaction records, were used by Russia’s Investigative Committee to build a terrorism case against a citizen accused of donating crypto to Ukrainian causes.
Binance’s Coordination and Cooperation
Investigative records reviewed by Reuters show that Binance provided Russian authorities with customer verification files, including phone numbers, addresses, passport scans, and residency permits, along with transaction data.
These records were tied to donations made by Russian IT specialist Yuri Belenkiy, who allegedly sent around $700 in cryptocurrency to Ukrainian fundraising campaigns between January 2023 and March 2024.
Russian authorities classified these donations as support for terrorist organizations, specifically the Azov Brigade. Belenkiy was arrested in September 2025 and remains imprisoned awaiting trial.
Positioning as More Than Just a Platform
Binance has stated that it cooperates with lawful information requests from law enforcement globally, even in jurisdictions where it no longer operates commercially.
CEO Richard Teng emphasized that cooperation should not be interpreted as partiality toward any government, noting that Binance responds to requests from countries such as the United States despite not having direct commercial operations there.
The company argued that it follows structured procedures subject to legal, privacy, and regulatory requirements, and that its cooperation is consistent with international norms for financial institutions.
It is important to note that this is not the first time Binance has cooperated with law enforcement.
In the United States, Binance has provided data to the Department of Justice (DOJ) and other agencies in multiple investigations. For example, Binance assisted in cases involving crypto‑related ransomware attacks, darknet market transactions, and sanctions evasion schemes.
Back in 2021, Binance reportedly worked with the DOJ to trace funds linked to Colonial Pipeline ransomware payments, helping authorities recover part of the ransom paid in Bitcoin.
The exchange has also cooperated in investigations into North Korean hacking groups and drug trafficking networks that used crypto for illicit transfers. These actions were framed as part of Binance’s commitment to global compliance and its effort to shed the reputation of being a lightly regulated platform.
Digesting Legal Context and Privacy Concerns
Binance’s cooperation with Russian authorities has raised questions about its legal obligations after leaving Russia. The exchange sold its local business to Commex in September 2023, formally exiting the market.
Legal experts argue that Binance had no obligation to comply with Russian requests after that point, particularly when data involved EU residents protected under the General Data Protection Regulation (GDPR).
The case also sparked concerns in Europe, as Belenkiy held a Bulgarian residency permit, potentially bringing his data under GDPR jurisdiction. Transferring EU‑protected data to Russian authorities could constitute a violation unless a valid transfer mechanism or exception was established.
Human rights organizations criticized Binance for maintaining communication channels with Russian law enforcement after its market withdrawal. Critics argue that sharing customer data with Russian authorities risks enabling political repression, especially against individuals accused of supporting Ukraine.
Exiled journalist Arkady Babchenko, whose fundraising campaigns were linked to the case, condemned Binance’s cooperation, calling it inappropriate for exchanges to share details of donations with Russian law enforcement.
Compliance, Data Privacy, Lawful Sanctions
Risks of using centralized exchanges, which retain detailed customer records to comply with know‑your‑customer (KYC) and anti‑money laundering (AML) requirements, are heightened for privacy cases.
These records include government IDs, addresses, and transaction histories, making them accessible to law enforcement through formal requests. Unlike self‑custody wallets, where users control private keys, centralized platforms hold customer data and infrastructure, leaving users vulnerable to disclosures.
Platforms and exchanges’ cooperation demonstrate the double‑edged nature of compliance: while data sharing can help combat crime, it can also expose users to political risks when governments use information for prosecutions tied to geopolitical conflicts.
