According to Reuters, in 2025, Binance provided Russian law enforcement with transaction data belonging to a Russian IT specialist who had sent money to Ukrainian organizations. Investigators used the information obtained from the exchange as evidence in a case involving “terrorist financing.”
Russian security services asked Binance for the client’s transaction history, and the exchange provided details of his transfers to Ukrainian organizations. One of the investigation documents cites these transactions as the basis for the “terrorist financing” charges.
The file provided to investigators contained the client’s identity documents, date of birth, address, phone number, passport number, a copy of his Russian passport, and a copy of his residence permit in an EU country. The documents also confirmed that the person had sent the funds to an address used to collect donations.
Reuters reported that the person charged in the case is now being held in a Russian prison and is awaiting trial.
Investigators Also Searched for Other Donors
Russian law enforcement also asked Binance to identify other users who had sent funds to the same address. Reuters noted that there is no information on whether the exchange provided data on those individuals or whether the investigation led to new criminal cases. It is also unknown whether Russian authorities requested data on other users who had donated to Ukrainian organizations.
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Binance said that it does not decide how authorities use the information they receive.
“Like other international financial institutions, the exchange cooperates with law enforcement agencies in response to lawful requests, while complying with applicable legal, privacy, and regulatory requirements,” a company spokesperson said.
Could Binance Have Violated European Data Protection Rules?
The disclosure of the data could have separate legal implications if Binance had registered the defendant as an EU customer. Reuters was unable to determine how the account was registered with the exchange.
Lawyer Mike Bystrov, founder of Stellar Consulting, said that if so, the client’s data could have been subject to GDPR requirements, the European Union’s data protection rules. In his assessment, transferring personal information to Russia would have required Binance to meet strict requirements under European law.
It is worth noting that Binance announced its complete exit from Russia in September 2023, saying that operating in the country was incompatible with its regulatory compliance strategy.
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