Russia has officially banned WhiteBIT, accusing the exchange of supporting Ukraine and engaging in illegal financial activities.
The decision was announced by the current Russian Prosecutor General, who labelled WhiteBIT and its parent company, W Group, as an “undesirable organization.” Under the Russian law, once this label is given to a company, it criminalizes it and reduces any form of interaction with the exchange within the country.
The Russian authorities claimed the exchange was involved in a “gray scheme” that basically involved them moving funds out of Russia and alleged that the exchange provided financial and technical support to Ukraine’s military since the start of the war in February 2022. This ban marks another escalation in Russia’s crackdown on foreign companies it believes are aligned with Ukraine.
The Allegations against WhiteBIT and its Response
In Russia’s recent statement, the Prosecutor General’s Office accused WhiteBIT of donating millions of dollars to support Ukraine’s armed forces, including money used to purchase drone systems.
According to the officials, the exchange’s leadership participated in international charity auctions to raise money for military equipment.
The Russian authorities further alleged that the exchange collaborated with Ukraine’s Ministry of Foreign Affairs and provided technical support to United24, a government-backed platform that was used to collect crypto donations for the war.
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WhiteBIT, on the other hand, has previously acknowledged supporting Ukraine but has rejected the claims of carrying out illegal activities. The company maintains that all its actions comply with international law and its personal stance on the war invasion.
It also added that despite losing access to the Russian market, it has continued to grow rapidly. The exchange reports an 8X growth since 2022 as it now serves more than 8 million users worldwide with expansion into the U.S. market.
Source: whitebit.com
The ban places WhiteBIT among the growing list of crypto-based platforms that have been caught in the crossfire of the Russia-Ukraine war, highlighting how digital asset platforms are slowly becoming the targets when it comes to the broader political and economic conflicts.
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