Binance faces backlash over sharing user data with Russia, leading to the arrest of a Ukrainian donor accused of financing terrorism.
Binance has come under scrutiny for allegedly supplying user data to Russian officials, leading to the arrest of a Ukrainian donor.
Company claims compliance with legal requests despite exiting Russian market
Yuri Belenkiy, an IT specialist, was detained by Russian authorities in September 2025 on charges of financing terrorism through donations to Ukrainian groups. The arrest was facilitated by information provided by Binance, according to reports.
Documents indicate that Belenkiy, who allegedly transferred over $700 between January 2023 and March 2024, was identified through details shared by Binance, including his birth date, address, and passport information.
Authorities claim Belenkiy made these contributions in response to calls from Arkady Babchenko, a prominent Kremlin critic, directing funds to the Ukrainian military and organizations labeled as terrorist by Russia, such as the Azov Brigade.
Following requests for his transaction history, Binance reportedly provided information to law enforcement, adhering to its policy of requiring a valid court order to release user data during investigations.
This incident occurred after Binance divested from the Russian market in September 2023, aligning with its compliance strategy. The exchange has emphasized its commitment to legal and privacy standards, though it has not publicly addressed potential implications for European data protection regulations in Belenkiy’s case.
The information regarding Belenkiy’s arrest was sourced by The First Department, a group that advocates for individuals involved in politically sensitive legal matters in Russia, from his family.
