Binance handed user data to Russia that led to a Ukrainian donor's arrest

Binance handed over customer data to Russian authorities, which ultimately led to the arrest of a Ukrainian donor. According to a Reuters report, the exchange provided law enforcement with valuable information about Yuri Belenkiy, a Russian IT specialist. Belenkiy was identified as the source of multiple transfers exceeding $700, all aimed at supporting Ukrainian groups and a terrorist organization.

The data included his personal details, Russian passport, and Bulgarian residency permit. Belenkiy was detained in September 2024 and is currently in custody awaiting trial. Russian authorities claim Belenkiy made the illicit payments between 2023 and 2024, following an appeal by exiled Kremlin critic Arkady Babchenko. The funds were intended for Ukrainian military efforts and the Azov Brigade, a group Moscow labels as a terrorist entity.

Binance's website directed law enforcement agencies in Russia and Belarus to an email address - case@binanceholdings.ru - where Belenkiy's transaction history was reportedly provided. The exchange's current law-enforcement guidelines state that user information can only be shared with valid court orders, police orders, or warrants.

Binance sold its Russian business to CommEX in September 2023, deeming operating in the country incompatible with its compliance strategy. Despite the disclosure, Binance maintained that it adheres to all legal, privacy, and regulatory requirements, and has not disclosed any breach of European data protection rules.