Russia Bans WhiteBIT Over Alleged Ukraine Military Funding
- Russia has labelled WhiteBIT undesirable and warned citizens against any contact.
- WhiteBIT confirmed about eleven million dollars in donations to Ukrainian causes since.
- The exchange exited Russia in 2022 and reports growth across global markets today.
Russia has banned the Ukrainian-founded crypto exchange WhiteBIT, labelling it an undesirable organization and criminalizing any interaction with the platform inside the country. The decision targets the exchange and its parent firm, W Group, over alleged support for Ukraine’s war effort. Russian prosecutors said the exchange backed Ukraine’s military through funding and technical infrastructure since February 2022.
Authorities warned that Russian citizens now face criminal charges for any dealings with WhiteBIT. The designation marks another step in Russia’s broader crackdown on firms accused of aiding Ukraine. It also reinforces the sharp divide between Russia’s regulatory stance and Ukraine-aligned crypto initiatives.
Russia Targets WhiteBIT Over Ukraine Support
The Russian prosecutor general accused WhiteBIT of actively supporting Ukraine’s Armed Forces from the first days of the conflict. Officials cited collaboration with Kyiv-linked institutions and fundraising initiatives.
Prosecutors said WhiteBIT management donated about $11 million in 2022. Of that amount, roughly $900,000 funded drone systems for Ukraine’s military, according to the statement.
The office also claimed that company leaders joined international charity auctions. It said proceeds from those events financed drones for Ukrainian fighters, including members of the Azov unit, which Russia classifies as a terrorist organization.
Exchange Response and Market Exit
WhiteBIT confirmed the donation figures in a statement shared. The company said the ban strengthens its commitment to supporting Ukraine. The exchange said it exited the Russian market in early 2022, soon after the invasion began. It blocked all Russian and Belarusian users and removed ruble trading pairs at that time.
WhiteBIT said those measures cut about 30% of its user base. Despite the loss, the company reported eightfold growth and said it now serves more than eight million users while expanding into the United States.
Related: Russia Orders Banks to Report Client Crypto Transactions
Broader Crypto Sanctions Context
One year into the war, Ukraine’s Ministry of Digital Transformation urged major exchanges to block Russian users. Letters went to platforms including Coinbase, Binance, Bybit, and WhiteBIT.
At the time, some exchanges declined a blanket ban. Coinbase and Kraken said they would act only when laws required enforcement while blocking sanctioned entities. Against that backdrop, Russian prosecutors accused WhiteBIT of building gray schemes to move funds abroad. The designation now extends to W Group and related entities over alleged illegal transfers.
Donations and Legal Fallout
WhiteBIT said it donated about $11 million of its own funds to Ukraine’s defence forces and humanitarian causes. Through its payment arm Whitepay, the exchange said it facilitated more than $160 million in crypto donations.
The company said these funds supported both civilian aid and defence-related fundraising. It described the actions as part of its civic position as a Ukrainian-rooted business during wartime.
For these efforts, WhiteBIT and founder Volodymyr Nosov received honours from Ukraine’s government and security services. Russia said the ban will have legal consequences for its citizens. WhiteBIT said the impact on operations will remain limited due to its earlier market exit and full blockade of Russian-linked users.
