Now Tensions Over Cryptocurrency Have Begun Between Russia and Ukraine – Russia Has Issued a Statement

The Russian Prosecutor General’s Office has declared WhiteBit, a Ukraine-based cryptocurrency exchange, a “notorious entity.”

According to the prosecutor’s office, it was a platform that allowed illegal money transfers from Russia and helped finance the Ukrainian Armed Forces (VSU)). The ruling also includes WhiteBit’s parent company, W Group and all its affiliated and subsidiary companies.

Russia authorities allege that the group’s platforms were used for a number of illegal activities, including “plans to siphon money away from Russia”. Prosecutor General’s calculations suggest that WhiteBit management has paid about $11 million to the Ukrainian military since 2022; it is claimed that around $900,000 was spent on unmanned aerial vehicles (drones) purchases.

This also accused WhiteBit of working closely with Ukraine’s Ministry of Foreign Affairs and technical support for the United24 platform, which raised crypto donations to Ukrainian currency. According to Russian police, this cooperation allowed the flow of crypto funds to Ukraine.

In 2018, WhiteBit has more than 8 million users, according to the company itself, which was founded by Ukrainian citizens as a . In the platform, daily trading volumes of about $11 billion in the spot market and up to $40 billion for futures trading, it reports.

Meanwhile, under current law there are no registered and running cryptocurrency exchanges in Russia. Attempts by the Central Bank of Russia (CBR) to complete work on legal rules for regulation of currency exchanges and cryptocurrency Exchange Services, are expected in July 1st. The CBR plans to introduce a liability regime for illegal brokerage activities in the crypto market by July 1, 2027.

*This is not investment advice.

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