Key Takeaways
- The Russian Federation has declared WhiteBIT cryptocurrency exchange and its affiliates ‘undesirable’.
- The exchange reportedly transferred about $11 million to support the Ukrainian military.
- Despite this ban, WhiteBIT maintains its pro-Ukraine stance and remains focused on expanding its operations globally.
Russia has banned the operation of the cryptocurrency exchange WhiteBIT in the country. This comes after prosecutors classified the platform and its affiliates and subsidiary organizations as ‘undesirable’ for alleged links to supporting Ukraine’s war effort.
The announcement came from the Prosecutor’s Office of the Russian Federation. The exchange was alleged to have funded Ukraine’s military and promoted ‘gray’ schemes and other illegal activities.
Exchange office indicted on charges of financing Ukrainian military
According to Russian authorities, since the start of the war with Ukraine in 2022, the WhiteBIT cryptocurrency exchange has donated a total of approximately $11 million to support the Ukrainian military. Of that sum, $900,000 was allocated to the purchase of drone systems for the military and Azov, an organization considered a terrorist group in Russia.
The office claimed the exchange was also part of a ‘gray’ scheme designed to move funds out of Russian territory. Additionally, the exchange is said to be working with the Ukrainian Ministry of Foreign Affairs through United24, a fundraising platform created to collect cryptocurrency donations for Ukraine.
All of these connections contributed to the decision to classify the exchange as ‘undesirable’. In Russia, the law states that organizations with such labels must cease operating in the country. Any person or entity found to be collaborating with them may be fined or sentenced to prison.
WhiteBIT’s public position on support for Ukraine
WhiteBIT, based in Lithuania, began operations in 2018 on the initiative of Ukrainian entrepreneurs. Since the start of this war, the exchange has consistently maintained a pro-Ukrainian stance. In a statement, it said it was aware of the decision announced by the Russian Prosecutor’s Office and that it was the strongest confirmation of its clear and consistent pro-Ukrainian position.
It recently revealed that it has provided technical infrastructure for the United24 platform. The company also reported on its website and official channels that donations to Ukraine exceeded $11 million, a figure consistent with figures cited by Russian prosecutors.
Despite facing this ban in Russia, the company said it remains focused on global growth, transparency and support for Ukraine.