Binance was cited as providing the Russian authorities with a user ' s transaction records and personal information, and the relevant material was subsequently used in a counter-terrorism financing case. The incident involved a Russian IT employee, which led to renewed attention being paid to the way in which the exchange processed data after it withdrew from the local market.
Case history
According to Russian investigators, the 49-year-old man transferred over $700 in encrypted currency to Ukrainian fund-raising organizations between January 2023 and March 2024. The investigation then shifted to Binance, where the Russian side contacted the company through a compliance mailbox to obtain records.
What information did Binance provide?
Reports indicate that the materials handed over by Binance include transaction records, as well as personal data such as the date of birth, address, telephone number, passport information, a copy of the Russian passport and a residence permit for Bulgaria. This information was later used as evidence in the case.
The post-Russian dispute
In September 2023, Binance indicated that it would withdraw from Russia and stated that it no longer wished to operate locally and would not continue to benefit from Russian operations. Russian legal practitioners have questioned how local users can expect data to continue to be protected since the company has announced its departure.
Corporate response
Binance indicated that its approach was to respond to legitimate requests and emphasized that it would not decide how law enforcement agencies would use such information. The company added that financial institutions around the world cooperate with legitimate requests for information from law enforcement authorities under applicable legal, privacy and regulatory requirements.