Russia has moved to block crypto exchange WhiteBIT, after prosecutors labelled the platform and its affiliated organizations as “undesirable,” citing alleged support for Ukraine’s war effort.
In a statement posted by the Prosecutor General’s Office of the Russian Federation, officials said the exchange had been banned for what they described as financing the Ukrainian government.
“A foreign cryptocurrency exchange that finances the Ukrainian regime has been declared undesirable in the Russian Federation,” the office said.
Prosecutors also accused WhiteBIT of helping facilitate so-called “gray” schemes to move money out of Russia, as well as enabling other forms of illegal activity. The move comes as Moscow tightens oversight of crypto channels tied to cross-border money flows.
Allegations of Funding Military Equipment
According to Russian authorities, WhiteBIT has supported Ukraine’s armed forces since the early days of the conflict, working through various programs alongside Ukrainian state institutions.
Prosecutors claim that in 2022, the exchange’s management donated roughly $11 million, including about $900,000 that was allegedly used to purchase drone systems for Ukrainian forces.
They also accused WhiteBIT’s leadership of taking part in international charity auctions, saying the proceeds were used to buy drones for Ukrainian fighters — including members of the Azov unit, which Russia designates as a terrorist organization.
Crypto’s Role in Wartime Under the Spotlight
WhiteBIT’s own public disclosures tell a similar story on the donation front, though framed differently. On its charity page, the exchange says it has donated more than $11 million since February 2022. Its payments arm, Whitepay, also claims to have helped collect more than 160 million USDT in crypto donations.
Under Russian law, being labeled “undesirable” effectively bans an organization from operating in the country. Individuals or entities that cooperate with such groups can face fines or criminal charges, according to legal and human rights groups that track the registry.
The decision underscores the broader struggle over crypto’s role in wartime financing. Shortly after Russia invaded Ukraine in 2022, Ukraine’s digital ministry urged major crypto exchanges to block Russian users. While some firms said they would comply with international sanctions, many stopped short of imposing blanket bans unless legally required.
