Binance Handed Russian Authorities User Data in Terror Financing Case

A spokesperson for the exchange declined to comment on Belenkiy's specific case. “Binance does not dictate or enforce the laws of any jurisdiction, nor does it determine charges or decide how governments use information in legal proceedings. Like other global financial institutions, we cooperate with legitimate requests from law enforcement agencies around the world, subject to applicable legal, privacy, and regulatory requirements,” the spokesperson told Reuters.

The case came to light through documents obtained by The First Department, an organization that supports defendants in politically motivated Russian cases. A relative of Belenkiy provided the documents. The situation raises questions about whether the data transfer could have violated European personal data protection regulations, given the accused's Bulgarian residence permit. Binance also declined to comment on that matter.

The development adds to scrutiny on the exchange's handling of user data, particularly in jurisdictions with broad surveillance powers. The email address used for the requests suggests Binance maintained a direct channel for Russian security services even as it publicly exited the market. Compliance experts watching the case note that the data shared – including passport copies and residence permits – goes beyond standard transaction records and touches on privacy rights that crypto firms typically cite as core to their value proposition.

The case is the latest in a series of incidents testing the boundaries of crypto exchange cooperation with authoritarian state requests. Binance has previously faced controversy over its compliance practices in Iran and China. The Belenkiy case, however, concerns a political prosecution rather than financial crime.

Belenkiy remains in pretrial detention. The First Department has said it will continue to monitor the case.