Binance says its law enforcement cooperation policy is built on lawful, structured processes that respect privacy and regulatory rules everywhere it operates. But a Reuters investigation published August 17 shows what that cooperation can look like in practice — and the answer has landed the exchange in the middle of a politically charged Russian terrorism financing case involving donations to Ukraine.
Key takeaways
- Binance reportedly gave Russian investigators identity documents and transaction records for Yuri Belenkiy, a Russian IT specialist accused of sending over $700 in crypto to Ukraine-linked groups.
- Belenkiy has been detained since September 2025 and remains in custody awaiting trial.
- Binance says it cooperates with lawful information requests from law enforcement worldwide, subject to legal, privacy and regulatory requirements.
- Binance exited the Russian market in 2023 through a sale to CommEX, which later shut down, but continued responding to Russian information requests afterward.
- Whether the disclosure complied with EU data protection rules remains an open question, since Belenkiy also holds Bulgarian residency.
The Belenkiy Case: What Reuters Found
Russian prosecutors used Binance-supplied records to build a terrorism financing charge against Yuri Belenkiy, a 49-year-old IT specialist, according to Reuters. The exchange reportedly handed over his date of birth, home address, phone number, passport number, and copies of his Russian passport and Bulgarian residency permit, along with transaction history confirming transfers he made through the platform.
Russia’s Investigative Committee alleges Belenkiy sent more than $700 in cryptocurrency between January 2023 and March 2024, responding to an appeal from exiled Kremlin critic Arkady Babchenko, who had publicized wallet addresses to fund medical equipment for Ukrainian soldiers. Investigators also linked some of the transfers to a group associated with the Azov Brigade, a unit within Ukraine’s National Guard that Moscow — though not necessarily other jurisdictions — designates as a terrorist organization.
Documents reviewed by Reuters show investigators sent their request to [email protected], an address Binance’s own support pages direct Russian and Belarusian law enforcement to use, and received two responses. Belenkiy was detained in September 2025 and remains jailed pending trial. Neither his lawyer nor Russian authorities responded to Reuters’ questions about Binance’s role. The documents themselves were obtained by The First Department, a legal support group for defendants in politically sensitive Russian cases, from one of Belenkiy’s relatives.
Binance’s Global Law Enforcement Cooperation Framework
Binance’s public position is that it treats every request from authorities the same way, regardless of where it originates. The company describes its process as lawful and structured, designed to keep pace with how traditional financial institutions handle similar demands.
Structured and Lawful Processes
Asked about the Belenkiy case specifically, Binance declined to comment but pointed to its standard practice. “Like other global financial institutions, we cooperate with lawful information requests from law enforcement globally, subject to applicable legal, privacy and regulatory requirements,” the exchange told Reuters. That framing echoes statements from Binance CEO Richard Teng, who has publicly said Binance cooperates with law enforcement globally through lawful, structured processes.
Respect for Legal and Privacy Requirements
Binance’s current law-enforcement guidelines state that the exchange requires a valid court order, police order, or warrant before releasing user information in a criminal investigation. The company has also said it does not write national laws, determine criminal charges, or control how governments ultimately use the information it hands over — decisions it says rest solely with the relevant authorities.
Consistent Global Compliance Standards
Binance’s central claim is that its compliance bar doesn’t shift from country to country. According to Teng, “our standard is consistent around the world, and on par with the highest compliance practices of global financial institutions.” That statement positions Binance’s approach to global regulatory compliance as equivalent to what banks and other regulated institutions already do when law enforcement comes knocking.
Comparison with Leading Financial Institutions
The comparison matters because it’s the crux of Binance’s defense whenever a disclosure draws scrutiny — as it has here. The company frames itself as simply following the same playbook as any bank subject to subpoenas or court orders, rather than as an exchange operating outside conventional financial oversight. Whether Russian requests met the same threshold Binance applies elsewhere is a separate question the company has not addressed publicly.
User Rights, Neutrality, and Unresolved Questions
Binance says protecting user rights and staying neutral are non-negotiable parts of its cooperation model, even as it works with governments to combat financial crime. That commitment is now being tested by a case where the underlying “crime” — donating crypto to Ukrainian causes — is treated very differently depending on which country is asking.
Neutral Collaboration to Fight Financial Crimes
Teng has stated plainly: “We will always protect user rights and cooperate with law enforcement in a neutral and legally compliant way to fight financial crimes and uphold global standards.” Belenkiy’s lawyer, Mike Bystrov, told Reuters that Binance had no obligation to supply the records at all, since the exchange had already exited Russia by the time the request was made. Binance disputed that characterization but did not specify which law required or permitted the disclosure.
The GDPR Question
Belenkiy holds both a Russian passport and a Bulgarian residency permit, raising the possibility that EU privacy protections could apply if he registered his Binance account as a resident of Bulgaria. Under that scenario, transferring his personal data to Russian authorities could have required strict safeguards, since the EU does not recognize Russia as offering adequate data protection. Reuters could not confirm how Belenkiy registered his account, and Binance did not identify which corporate entity processed the Russian request. The European Data Protection Board declined to comment on the individual case, saying enforcement falls to national regulators, and Bulgaria’s data protection authority did not respond to questions about whether any rules were broken. Secondo Bystrov, la normativa dell’UE avrebbe potuto imporre a Binance l’obbligo di non rendere pubblica l’informazione, though no regulator or court has reached that conclusion.
The episode surfaces just as Binance faces separate scrutiny over its compliance controls; Teng has also pushed back publicly on a Wall Street Journal report questioning weaknesses in the exchange’s sanctions screening. Binance sold its Russian business to CommEX in September 2023, saying at the time that operating there no longer fit its compliance strategy and that it would keep no revenue-sharing arrangement or repurchase option. CommEX later shut down entirely. Continuing to answer Russian information requests after that exit doesn’t necessarily mean Binance resumed commercial activity there — companies can retain historical records and respond to legal demands long after leaving a market — but it does show that its law enforcement cooperation channel with Moscow stayed open well past the formal split.
FAQ
How does Binance cooperate with law enforcement agencies?
Binance cooperates a livello mondiale seguendo procedure legittime e ordinate che garantiscono il rispetto dei vincoli normativi, della riservatezza e delle disposizioni legali applicabili in ogni territorio.
Are Binance’s compliance standards consistent worldwide?
Yes, Binance maintains consistent compliance standards globally, comparable to those of leading global financial institutions.
Does Binance protect user rights during cooperation with law enforcement?
Binance commits to protecting user rights and cooperating in a neutral and legally compliant way to combat financial crimes.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
Be the first to comment