Russia Targets Crypto’s Shadow War Pipeline as WhiteBit Faces Sweeping Ban

Russia’s Prosecutor General has designated Ukrainian cryptocurrency exchange WhiteBit as an “undesirable organization.” They accuse it of facilitating illegal fund transfers out of Russia and financing Ukraine’s armed forces.

The designation also extends to WhiteBit’s parent company, W Group, and all affiliated entities, effectively banning their operations in Russia.

Russia Moves Against WhiteBit in Escalating Crypto–War Crackdown

Local media reports that, according to Russian authorities, WhiteBit’s management has moved approximately $11 million to Ukraine since 2022. This includes nearly $900,000 earmarked for drone purchases.

The Prosecutor General’s Office further claims that the platform provided technical support to United24, Ukraine’s state-backed crypto donation platform.

Allegedly, they also engaged in “shadow schemes” to withdraw funds from Russia and conduct other illicit activities.

Founded in 2018 by Ukrainian entrepreneurs, WhiteBit claims an active user base exceeding 8 million and daily spot trading volumes of $11 billion, with futures trading reaching up to $40 billion.

Despite its international reach, the platform now faces significant restrictions in Russia amid a tightening regulatory environment.

The move against WhiteBit coincides with Russia’s accelerated push to formalize crypto regulation. According to local media, the Bank of Russia has outlined new licensing requirements for crypto exchanges and digital depositories, promising simpler licensing for platforms that do not deal in securities.

Banks and brokers wishing to operate with cryptocurrencies will face special prudential requirements to mitigate risks to TradFi activities.

Ekaterina Lozgacheva, Director of the Bank of Russia’s Department of Strategic Development of the Financial Market, emphasized that the regulator aims to facilitate the sale of mined cryptocurrencies both domestically and abroad. At the same time, it would introduce penalties for intermediaries engaging in illegal activities.

These measures are slated to take effect by July 1, 2027, once amendments to Russia’s crypto legislation are finalized.

Russia Proposes Strict Crypto Investment Limits

As part of the proposed framework, non-professional investors would be allowed to invest in digital currencies, but within strict annual limits.

Currently, the Central Bank has suggested a ceiling of 300,000 rubles per year per intermediary. However, the Ministry of Finance has indicated that this figure could be adjusted.

Deputy Finance Minister Ivan Chebeskov stated that any market proposals to raise this threshold would be considered. This reflects a broader intent to balance investor access with financial safeguards.

Finance Minister Anton Siluanov expressed support for the plan. He indicated that non-professional access should be confined to officially registered platforms and subject to investment limits.

“To minimize risks, the central bank and I plan to limit the volume of such transactions and investments in the crypto market,” local media reported, citing Siluanov.

He noted that draft legislation regulating digital currencies is expected to be submitted to the State Duma in the first half of 2026.

The crackdown on WhiteBit highlights Russia’s growing scrutiny of crypto flows, particularly amid geopolitical tensions with Ukraine.

As authorities tighten control over crypto intermediaries and establish clear legal liabilities, platforms operating across borders may face mounting operational and legal risks in the Russian market.