Russian authorities want to expel WhiteBIT, a popular cryptocurrency exchange in the region, for its involvement in efforts to fund Ukraine’s defense in the face of ongoing Russian aggression.
Prosecutors in Moscow have accused the EU-registered trading platform of actively supporting the Ukrainian side and facilitating capital flight from Russia since the Russian invasion began in earnest nearly four years ago.
Russian prosecutors target virtual currency exchange WhiteBIT
Russia’s Prosecutor General’s Office declared the activities of WhiteBIT and its network of affiliates and subsidiaries in Fintech W Group as “undesirable” in the Russian Federation, without elaborating on the outcome.
A statement released on Friday claimed:
“This European crypto trading platform is used by crypto exchanges and exchanges to conduct a variety of transactions, including organizing ‘gray’ schemes to extract funds from Russia and other illegal activities.”
Russian prosecutors also emphasized that the exchange has actively supported the Ukrainian military since the beginning of what the Russian government continues to call “special military operations” on the territory of the neighboring country.
According to the press release, WhiteBIT is accused of “implementing various programs in cooperation with the institutions of the Kiev regime,” further elaborating:
“In 2022, WhiteBIT’s management transferred a total of approximately $11 million to them. $900,000 was allocated for the purchase of drone systems.”
Prosecutors said executives from virtual currency companies participated in international charity auctions and donated proceeds to the same cause.
The paper noted that some of the drones purchased with the funds would end up in the hands of the Azov Brigade of the Ukrainian National Guard, which is considered a terrorist organization by Russia.
“WhiteBIT is cooperating with the Ministry of Foreign Affairs of Ukraine. Since May 2022, the exchange has provided technical support to the United 24 fundraising platform, created on the initiative of the President of Ukraine to collect crypto donations,” the announcement added, as quoted by Russian-language crypto media in the region.
Rooted in Ukraine, WhiteBIT is one of the largest coin trading platforms in Europe
WhiteBIT bills itself as Europe’s largest cryptocurrency exchange by traffic volume and is undoubtedly one of the top exchanges for digital assets in the Old Continent.
Founded in 2018 by Ukrainian entrepreneur Volodymyr Nosov and registered in Lithuania, the platform has become a major global platform with millions of users in many countries as part of the W Group.
Nosov, who is also CEO of WhiteBIT, has been recognized for his efforts to increase the adoption of cryptocurrencies in war-torn Ukraine through various partnerships and philanthropic efforts.
The usage of Ukrainian coins soared during the violent war with Russia, as well as legal tender regulations imposed by the National Bank of Ukraine (NBU) under martial law in the early stages of the conflict.
The invaded Eastern European country is ranked among the world’s top adopters in the 2025 Cryptocurrency Geography Report produced by blockchain analysis firm Chainalysis.
Kiev authorities are taking steps to legalize cryptocurrencies and properly regulate the country’s growing digital asset economy.
The first attempt was made in early 2022, but was postponed by a Russian military offensive that began in February of that year.
As reported by Cryptopolitan, in September 2025, members of Ukraine’s unicameral parliament, the Verkhovna Rada, approved a bill “On the virtual asset market.” At the time, Nosov welcomed the development and emphasized its importance:
“A window of opportunity has opened to attract investments in cryptocurrencies and repatriate foreign assets of Ukrainian crypto enthusiasts.”
Meanwhile, Russia is also on the path to regulating rather than banning cryptocurrencies and related activities, but it is clearly trying to do it the Russian way.
The country legalized digital currency mining in August 2024 and introduced an “experimental” legal regime for limited cryptocurrency transactions the following spring.
This temporary arrangement has primarily been used to circumvent Western financial regulations on cross-border trade and for tightly controlled cryptocurrency investments by “highly qualified” investors.
Then, in late December 2025, the Bank of Russia announced a new regulatory concept aimed at recognizing virtual currencies and stablecoins as “financial assets” and expanding access for investors.
Moscow officials say their homegrown crypto infrastructure is needed to take advantage of the profits generated by the burgeoning mining sector, reduce dependence on foreign trading platforms and limit capital flight through digital assets.
