Key Insights:
- WhiteBIT is on the undesirable list, and Russia has banned the country.
- Prosecutors mention claims of $11M donations and funding drones.
- WhiteBIT departed Russia in 2022 and lost 30% of its users.
The WhiteBIT blacklist took effect on Monday, when the cryptocurrency exchange and its parent company, W Group, were added to Russia’s list of undesirable organizations, effectively prohibiting their operations in the country.
WhiteBIT Blacklist Tied to Alleged Financial Support for Ukraine
In a press release, the designation bars the entities from holding bank accounts, transferring funds, or servicing customers in Russia.
The office of the Prosecutor General of the Russian Federation indicated that the ruling was connected to the alleged support WhiteBIT should have provided to Ukraine due to the current conflict, which is in its fourth year.
Furthermore, the governmental agencies referred to WhiteBIT as a European crypto-exchange based in Vilnius, Lithuania. They stated that the enterprise had been established in Kharkiv, Ukraine, by an entrepreneur named Volodymyr Nosov.
Russian prosecutors stated that WhiteBIT has supported Ukraine’s Armed Forces since the beginning of the conflict in 2022.
According to the announcement, the exchange’s management transferred approximately $11 million to Ukrainian institutions in 2022, with $900,000 allocated for the purchase of drone systems.
The statement added that company executives participated in international charity auctions and directed proceeds to similar initiatives.
The Prosecutor General’s Office also claimed that some of the uncrewed aerial vehicles purchased with the funds were supplied to the Azov Brigade of Ukraine’s National Guard, which Russia designates as a terrorist organization.
Source: WhatNow
In addition, authorities alleged that WhiteBIT cooperated with Ukraine’s Ministry of Foreign Affairs and provided technical support to the United24 fundraising platform, a state-backed initiative created by President Volodymyr Zelenskyy to collect cryptocurrency donations.
WhiteBIT’s website confirms the $11 million donation figure. According to its website, United24, a crypto-donation platform, raised $3.4 billion in donations to support initiatives such as medical aid, education, and science programs.
Exchange Response and Exit From the Russian Market
In a public response to the designation, WhiteBIT stated that it blocked users from Russia and Belarus and discontinued trading pairs with the Russian ruble following the start of the full-scale conflict in 2022.
The company stated that these steps resulted in the loss of approximately 30% of its user base at the time.
The exchange added that it had no users or business activity in Russia since 2022 and emphasized that it does not operate in the Russian market. WhiteBIT also reported more than eightfold growth in subsequent years as it expanded internationally.
The company’s Anti-Money Laundering (AML) policy states that Russian residents and individuals in “temporarily occupied territories of Ukraine” were restricted from complying with European Union sanctions introduced in 2022.
WhiteBIT Blacklist and Regulatory Context in Ukraine and Russia.
The WhiteBIT blacklist decision falls within a broader range of sanctions and regulations governing crypto activity in the region.
Following Russia’s 2022 invasion, the Ukrainian digital ministry asked large crypto exchanges to ban Russian users.
Other platforms stated they would comply with sanctions but would not impose all-out bans unless mandated by law.
WhiteBIT’s Involvement in Ukrainian Digital Initiatives
WhiteBIT has been involved in multiple initiatives linked to Ukraine’s digital and humanitarian infrastructure since 2022.
The company partnered with Ukraine’s foreign ministry to support consular services in countries where it maintains offices and helped establish a helpline for Ukrainian citizens living abroad. The exchange also enabled cryptocurrency donations for major charitable and humanitarian organizations through its crypto-processing service Whitepay.
According to WhiteBIT, Whitepay and related platforms have facilitated more than $160 million in crypto donations since the start of the conflict.
In its statement, the exchange summarized that it has donated around $11 million of its own funds over the past 4 years to support Ukraine’s defense forces and humanitarian initiatives for civilians.
Additionally, Volodymyr Nosov, WhiteBIT’s founder and chief executive officer, has been recognized in Ukraine for his involvement in crypto adoption and charitable initiatives.
Authorities in Russia framed the designation as part of efforts to limit organizations perceived to support Ukraine’s military and state institutions.
