Binance Hands Over Client Data

Binance, the world's largest crypto exchange, has provided Russian authorities with client details used to charge a Russian IT specialist, Yuri Belenkiy, with terrorism financing for donating to Ukrainian fundraising campaigns. This move has raised questions about the company's obligations under European Union data protection law, particularly since Binance claimed to have fully exited Russia in 2023.

Binance handed over details of cryptocurrency donations to Ukrainian fundraising campaigns, which were used as evidence to bring charges against Belenkiy. The Russian IT specialist was detained in September 2025 and charged with terrorism financing after sending over $700 to the Ukrainian military and an associated group, known as the Azov Brigade and the Azov Regiment.

Binance cooperates with lawful information requests from law enforcement globally, subject to applicable legal, privacy, and regulatory requirements. However, the company's decision to provide client details to Russian authorities has sparked controversy, given its claim to have exited the Russian market.

The European Data Protection Board declined to comment on the case, stating that responsibility for enforcement of data protection laws lies with relevant authorities in individual European states. The Commission for Personal Data Protection in Bulgaria also did not respond to questions about whether data protection laws had been broken in Belenkiy's case.

## Why it matters The case highlights the complexities of data protection and privacy in the context of international law enforcement cooperation. Many Russian citizens have used crypto exchanges to support causes that Moscow subsequently labelled extremist or terrorist, and several dozen people have been prosecuted and convicted in Russia for making such donations. The fact that Binance provided client details to Russian authorities, despite claiming to have exited the Russian market, raises questions about the company's obligations to protect user data and comply with European Union data protection law.

The outcome of this case may have significant implications for the crypto industry and its relationship with law enforcement agencies globally. As the world's largest crypto exchange, Binance's actions are likely to be closely watched by regulators, lawmakers, and users alike. The company's decision to cooperate with Russian authorities, despite potential obligations under European Union data protection law, may set a precedent for future cases and raise further questions about the balance between law enforcement cooperation and user privacy.