Headline: Reuters: Binance handed Russian investigators donor data used in terrorism-financing case against IT specialist Summary Reuters reported on Aug. 17 that cryptocurrency exchange Binance supplied Russian authorities with identity documents and transaction records that were later used to bring terrorism-financing charges against Russian IT specialist Yuri Belenkiy. The material reportedly included personal identifiers (address, phone, date of birth, passport) and a Bulgarian residency permit, as well as records of Binance transfers that prosecutors cited in their case file. What Reuters found - Documents reviewed by Reuters show Russia’s Investigative Committee requested Belenkiy’s Binance transaction history. Binance allegedly responded with a data file confirming transfers to a crypto wallet publicized by exiled Kremlin critic Arkady Babchenko. Babchenko had been soliciting donations for medical equipment for Ukrainian soldiers. - Russian investigators say Belenkiy, 49, made payments between January 2023 and March 2024 totaling more than $700 to causes linked to Ukraine’s military. The interim case outline, seen by Reuters and sent to the prosecutor general’s office, cites the Binance records among the grounds for terrorism-financing charges. - Investigators also accuse Belenkiy of sending funds to a group associated with the Azov Brigade, which Russia designates as a terrorist organization; other countries do not necessarily share that designation. Procedural details and sources - The First Department, a legal support group that helps defendants in politically sensitive cases, obtained the documents from a Belenkiy relative and shared them with Reuters. Reuters could not independently verify how the organization received the files. - Reuters reported that Russian investigators received two replies from an official Binance support address for Russian/Belarusian law enforcement ([email protected]), and that the company’s public guidance asks domestic agencies to use that channel. - Belenkiy remains detained in Russia awaiting trial. Neither his lawyer nor Russian authorities answered Reuters’ questions about Binance’s role; the lawyer did not publicly contest the transaction evidence. Binance’s response - Binance declined to discuss the confidential request or the specific case but said it “routinely cooperates with lawful information requests from law enforcement globally, subject to applicable legal, privacy and regulatory requirements.” - The company added that it does not write national laws or decide criminal charges, saying those decisions lie with the relevant authorities. - Binance disputed a lawyer’s claim that it had no obligation to respond because it had announced a full exit from Russia in September 2023 via a sale to CommEX, but did not identify the legal basis authorizing the disclosure. Legal and data-protection questions - The case raises potential cross-border privacy questions. Belenkiy holds a Russian passport and a Bulgarian residency permit; lawyer Mike Bystrov suggested EU data-protection rules might apply if Belenkiy’s Binance account was registered as an EU resident. Under that view, transferring personal data to Russia would require strict safeguards because the EU does not recognize Russia as providing adequate data protection. - Reuters could not establish whether Belenkiy registered his account as a Bulgarian resident, nor which Binance entity processed the request. The European Data Protection Board said enforcement would fall to national regulators; Bulgaria’s data-protection authority did not respond to Reuters. - Legal observers note that companies can retain historical customer records and respond to lawful information requests after leaving a market, but the legal basis and limits for such disclosures remain central to any subsequent GDPR or other inquiries. Wider implications - The episode adds new scrutiny of Binance’s compliance practices and how exchanges handle law-enforcement requests that may have political sensitivities. Reuters noted the documents concern only Belenkiy; it could not determine whether Binance disclosed records for other donors to the same wallets or whether such disclosures led to related prosecutions. - Separately, Binance CEO Richard Teng has publicly rejected other claims about sanctions-control weaknesses and emphasized the exchange’s cooperation with law enforcement worldwide. What remains unresolved - No trial date has been announced for Belenkiy, and no regulator or court has yet ruled on whether Binance’s disclosure violated EU data-protection law. Key unanswered questions include which Binance legal entity handled the request, the legal authority cited for disclosure, and whether Belenkiy’s account was registered in the EU. Source: Reuters investigation (Aug. 17) Read more AI-generated news on: undefined/news