Binance gave Russia client data used in terrorism case, Reuters reports

Binance provided Russian authorities with detailed transaction records of a client who was subsequently charged with terrorism financing over cryptocurrency donations to Ukrainian military-linked groups, according to law enforcement documents reviewed by Reuters.straitstimes

The case centers on Yuri Belenkiy, a 49-year-old Russian IT specialist who holds both a Russian passport and a Bulgarian residency permit. Russia's Investigative Committee alleged in October 2025 that Belenkiy sent more than $700 in cryptocurrency between January 2023 and March 2024 to the Ukrainian military and the Azov Brigade, which Moscow designates as a terrorist organization. He was detained in September 2025 and formally charged on October 13, 2025.cryptonomist+1

The disclosure is notable because Binance publicly announced its full exit from Russia in September 2023, saying operating there was no longer compatible with its compliance strategy. Yet documents show the exchange continued responding to Russian law enforcement requests well after that departure.straitstimes

How Binance's Data Reached Russian Investigators

Russian investigators sent a request for Belenkiy's transaction history directly to Binance, and received two replies from [email protected] — an email address listed on Binance's website for Russian and Belarusian law enforcement. The replies included confirmation of Belenkiy's transfers, along with his date of birth, address, phone number, passport number, and copies of his Russian passport and Bulgarian residency permit.cryptonomist+1

The transactions were incorporated as evidence in the case, with an interim outline sent to Russia's prosecutor-general citing them as grounds for the terrorism financing charges.straitstimes

A Binance spokesperson told Reuters: "Like other global financial institutions, we cooperate with lawful information requests from law enforcement globally, subject to applicable legal, privacy and regulatory requirements."straitstimes

GDPR Questions and Privacy Concerns

The case has raised questions about whether Binance violated European Union data protection law. Mike Bystrov, founder of crypto regulation firm Stellar Consulting, told Reuters that if Belenkiy was registered as an EU resident — plausible given his Bulgarian residency — the bloc's General Data Protection Regulation would have required a court order before disclosure. Bystrov added that Russia is not recognized under GDPR as a country with adequate data protection.cryptonomist+1

Dmitry Zair-Bek, head of The First Department, the NGO that provided the documents to Reuters, said: "An EU resident would hardly imagine that a crypto-giant that announced it was leaving Russia is actually retaining a channel of communication with that country's law enforcement."straitstimes

A Pattern of Scrutiny

Reuters previously reported that a Binance regional executive met officials from Russia's financial monitoring agency in 2021 who sought help identifying customers who donated bitcoin to jailed opposition figure Alexei Navalny, who died in an Arctic penal colony in 2024. Rights activists say several dozen people have been convicted in Russia for crypto donations later labeled extremist or terrorist by Moscow, though the exact number remains unclear.cryptonomist+1