Russia declares WhiteBIT 'undesirable' over Ukraine funding reports

Russian authorities want to banish WhiteBIT, a popular cryptocurrency exchange in the region, over its involvement in efforts to fund Ukraine’s defense in the face of ongoing Russian aggression.

Prosecutors in Moscow accuse the EU-registered trading platform of actively supporting the Ukrainian side since the start of the full-scale Russian invasion nearly four years ago, and blame it for facilitating capital flight from Russia.

Russian prosecutors target cryptocurrency exchange WhiteBIT

Russia’s Prosecutor General’s Office has declared the activities of WhiteBIT and its network of affiliates and subsidiaries in the fintech W Group, “undesirable” in the Russian Federation, without elaborating on the consequences.

A statement issued Friday alleged:

“This European crypto trading platform is used by cryptocurrency exchanges and exchangers to conduct various transactions, including organizing ‘gray’ schemes to withdraw funds from Russia, as well as other illegal activities.”

Russian prosecutors also highlighted that the exchange has actively supported the Ukrainian Armed Forces since the first days of what Moscow continues to call “the special military operation” on the territory of its neighbor.

WhiteBIT is being accused of “implementing various programs in collaboration with the Kyiv regime institutions,” according to the press release, which further detailed:

“In 2022, WhiteBIT’s management transferred a total of approximately $11 million to them. $900,000 was allocated for the purchase of drone systems.”

The prosecutor’s office pointed out that the crypto company’s executives participate in international charity auctions, donating the proceeds for the same purpose.

It noted that some of the UAVs purchased with the money end up in the hands of the Azov Brigade of Ukraine’s National Guard, regarded by Russia as a terrorist organization.

“WhiteBIT cooperates with the Ministry of Foreign Affairs of Ukraine. Since May 2022, the exchange has been providing technical support to the United24 fundraising platform, created at the initiative of the President of Ukraine to collect cryptocurrency donations,” the announcement added, quoted by Russian-language crypto media in the region.

Ukrainian-rooted WhiteBIT is one of Europe’s largest coin trading platforms

WhiteBIT, which brands itself as the largest European crypto exchange by traffic, is certainly among the top trading venues for digital assets on the Old Continent.

Founded by Ukrainian entrepreneur Volodymyr Nosov in 2018 and registered in Lithuania, it has become a major global platform, as part of the W Group, with millions of users across many countries.

Nosov, who is also the CEO of WhiteBIT, has been recognized for his efforts to promote crypto adoption in wartorn Ukraine, including through various partnerships and charitable initiatives.

Ukrainian coin usage spiked amid the bitter war with Russia, which also brought fiat restrictions imposed by the National Bank of Ukraine (NBU) under martial law during the initial stages of the conflict.

The invaded Eastern European nation ranked among the world’s top adopters in the 2025 Geography of Cryptocurrency report produced by the blockchain analytics firm Chainalysis.

The authorities in Kyiv have been taking steps to legalize cryptocurrencies and properly regulate the country’s growing digital-asset economy.

Their first attempt to do that, in early 2022, was postponed by the Russian military attack, which started in February of that year.

In September 2025, lawmakers in the Verkhovna Rada, Ukraine’s unicameral legislature, approved a bill “On Virtual Asset Markets,” as reported by Cryptopolitan. At the time, Nosov welcomed the development, emphasizing its significance:

“A window of opportunity has opened for attracting crypto investments and repatriating foreign assets of Ukrainian crypto enthusiasts.”

Meanwhile, Russia has also taken the path toward regulating rather than banning cryptocurrencies and related activities, although it’s clearly going to do it the Russian way.

The country legalized the mining of digital currencies in August 2024 and introduced an “experimental” legal regime for limited crypto transactions the following spring.

The temporary arrangement has been mainly used to bypass Western financial restrictions in cross-border trade and for strictly controlled crypto investment by “highly qualified” investors.

Then, in late December 2025, the Bank of Russia announced a new regulatory concept that aims to recognize cryptocurrencies and stablecoins as “monetary assets” and expand investor access.

Officials in Moscow are insisting the nation needs its own crypto infrastructure to tap into the profits generated by the booming mining sector, reduce dependence on foreign trading platforms and limit capital flight through digital assets.

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