Binance Shared Customer Data With Russia in Ukraine Crypto Donation Case

Highlights:

• Binance shared detailed customer and transaction data with Russian investigators in a case involving crypto donations to Ukraine. 
• Investigators used Binance records to expand the case from six transfers to 15 transfers totaling 1,680.69 USDT.
• First Department says disclosure of European customer data to Russia may raise EU privacy concerns.

Binance shared detailed customer and transaction records with Russian investigators in a case involving crypto donations to Ukraine, according to an August 17 report by the First Department. Russian authorities later used the information to build a broader case against Yuriy Belenky, an IT specialist who had been living in Bulgaria.

Belenky had lived in Bulgaria since 2015 and regularly traveled to Russia. Russian authorities detained him at Moscow’s Sheremetyevo Airport in September last year. They first held him over a minor public-order offense. Later, investigators charged him under Russia’s terrorism-financing law.

The case initially focused on six crypto transfers worth 742.26 USDT, or about 62,000 rubles. Investigators said Belenky sent the funds to a wallet promoted by journalist Arkady Babchenko. Russian authorities claimed the donations supported Ukraine’s armed forces and the Azov regiment.

🚨BINANCE SHARED CLIENT DATA WITH MOSCOW OVER UKRAINE DONATIONS!

Despite claiming a full exit from Russia in 2023, Binance provided authorities with transaction details and personal info of a Russian IT specialist who donated crypto to Ukrainian causes, according to Reuters.… pic.twitter.com/3s4cMIKDzY

— Crypto Banter (@crypto_banter) August 17, 2026

Binance Data Helped Russian Investigators Find More Transfers

Russia’s Investigative Committee contacted Binance last October and requested information about six users who had sent funds to the wallet linked to Babchenko. According to the First Department, Binance provided detailed records connected to Belenky’s account. The information reportedly included his personal details, identity documents, account balances, deposits, withdrawals and internal transfers.

Binance also provided records covering Binance Pay activity, peer-to-peer transactions, login history, devices and geolocation data, the report said. Investigators then found nine additional transfers that they had not included in the original case. As a result, authorities expanded the case to cover 15 transfers totaling 1,680.69 USDT.

The records also reportedly showed five transfers worth 367.37 USDT to Ukrainian organization Sprava Hromad. Investigators also identified three transfers totaling 311.40 USDT to Ukrainian crypto exchange Kuna.

Report Raises Questions About EU Customer Data

Belenky originally registered his Binance account with a Russian passport. However, he later provided a Bulgarian residence permit after Binance introduced restrictions for some Russian users in 2022. According to the First Department, Binance then treated him as a European customer.

The group argued that Binance’s decision to provide Belenky’s personal information to Russian authorities could raise questions under European Union data protection rules. However, the report reflects the First Department’s legal assessment. It does not point to a court ruling that found Binance violated EU law.

Binance referred the group to Section 8 of its privacy policy, which covers the circumstances in which the crypto exchange may disclose customer information to government authorities. The report also said Binance support told the group that the exchange does not provide third-party account information without a legal basis. Law enforcement requests generally require a court order or a similar legal document.

Crypto Exchanges Can Connect Wallets to Real Identities

The case also shows how authorities can connect blockchain activity with users of centralized crypto exchanges. Public blockchains allow investigators to follow transactions between wallet addresses. However, exchanges such as Binance collect customer identity information through know-your-customer, or KYC, checks. 

According to the First Department, investigators may have tracked crypto transfers on the blockchain and compared them with fundraising posts shared by Babchenko. They then requested Binance records to identify the people connected to those transactions.

Binance Explains Its Approach to Law Enforcement Requests

Binance told Reuters in a statement published August 17 that it cooperates with lawful information requests from law enforcement agencies worldwide, subject to legal, privacy and regulatory requirements. Binance’s Law Enforcement Request System allows government agencies to request customer information. The exchange said it reviews each request individually and provides data when required under applicable laws and its terms.