Russia Bans WhiteBIT, Deeming Crypto Exchange ‘Undesirable’ Over Ukraine Support

Russian authorities blacklisted WhiteBIT on Monday, highlighting the crypto exchange’s support of Ukraine’s war effort as the conflict in Europe enters its fourth year.

The Prosecutor General’s Office of the Russian Federation designated WhiteBIT and parent company W Group as “undesirable organizations,” prohibiting the entities from holding bank accounts, transferring funds, or servicing customers within the country.

In a press release, Russian authorities described WhiteBIT as a European platform. Although the company is currently headquartered in Vilnius, Lithuania, WhiteBIT was established in Kharkiv, Ukraine, by entrepreneur Volodymyr Nosov. A year ago, the company unveiled offices in New York, alongside the debut of a dedicated crypto-trading platform for U.S markets.

Russian authorities accused WhiteBIT of helping customers withdraw funds from the country through “gray schemes,” while also supporting “other illegal activities.”

Decrypt has reached out to WhiteBIT for comment.

The exchange has generated $1.1 billion worth of trading volume over the past day, according to CoinGecko. Binance, the world’s largest crypto exchange, meanwhile saw $14.2 billion worth of digital assets change hands.

The authorities said that WhiteBIT’s platform has been used to support the Ukrainian military since Russia’s invasion of the country in February 2022. At times, WhiteBIT has allegedly collaborated with institutions linked to the Ukrainian government, they added.

The prosecutor’s office also accused WhiteBIT’s management of donating $11 million to Ukraine in 2022, claiming that $900,000 was earmarked for the purchase of drone systems. WhiteBIT’s own website notes the same $11 million figure. The exchange is also supporting United24, a crypto donation platform established by Ukrainian President Volodymyr Zelenskyy, the Russian agency alleged.

United24 has collected $3.4 billion in donations, according to its website. The organization allows people to donate directly to initiatives like medical aid and education and science.

Russians were already banned from using WhiteBIT, according to the company’s AML Policy, as well as those in “temporarily occupied territories of Ukraine.” The policy references its compliance with European Union sanctions against Russia brought as early as 2022.

In July, Ukraine sanctioned 19 Russian crypto miners, 17 digital asset operators, and five exchanges, along with firms tied to Russia’s financial infrastructure. The restrictions were part of what Zelenskyy described as “a special sanctions package” at the time.

In a September report, blockchain forensics firm Ellpitic said that it had used leaked documents to uncover how Russia has been using crypto to skirt sanctions and influence elections in Moldova. The firm tracked $8 billion in stablecoin transactions over an 18-month period.

In an opinion article published by the Kyiv Post in October, Nosov called for any digital assets regulation passed in Ukraine to bar companies with ties to Russia from operating in the country. He said there was no room for compromise regarding the matter.

“Ukraine’s market must be protected from any attempts to let in operators that served citizens of the aggressor state during the war,” he wrote. “No matter how attractive their investments might appear, for such companies, all doors and opportunities must remain closed.”