Russia Declares WhiteBit Undesirable, Accused of Funding Ukraine

Beincrypto reports that Russia's Prosecutor General has designated Ukrainian cryptocurrency exchange WhiteBit as an "undesirable organization," accusing it of facilitating illegal fund transfers out of Russia and financing Ukraine’s armed forces. The designation extends to WhiteBit's parent company, W Group, and all affiliated entities, effectively banning their operations in Russia, the office said.

Russian authorities told local media they believe WhiteBit's management moved about $11 million to Ukraine since 2022, including nearly $900,000 said to be earmarked for drone purchases, and that the platform provided technical support to the United24 donation platform while engaging in "shadow schemes" to withdraw funds from Russia.

Founded in 2018, WhiteBit claims an active user base exceeding 8 million and daily spot trading volumes of $11 billion, with futures trading up to $40 billion; it now faces significant restrictions amid a tightening regulatory environment. The move coincides with the Bank of Russia outlining new licensing requirements for crypto exchanges and digital depositories, special prudential requirements for banks and brokers, and steps to facilitate sales of mined cryptocurrencies while penalizing intermediaries for illegal activity.

Key Topics

Crypto, Whitebit, W Group, Russia, Ukraine