WhiteBIT Pushes Back Against Russia Ban, Says It Left Market in 2022

WhiteBIT denied claims made by Russia’s Prosecutor General alleging that it facilitated illegal fund transfers out of Russia to finance Ukraine’s armed forces. 

The Ukrainian crypto exchange asserted it stopped operating in Russian territory since wae broke out between the two countries. 

WhiteBIT Rejects Russia’s Allegations

In an official statement, WhiteBIT pushed back against Russia’s ban, stating that it had completely ceased operations in the country shortly after Russia invaded Ukraine.

“Following the start of Russia’s full-scale invasion of Ukraine in 2022, WhiteBIT took a principled stance: it blocked all users from Russia and Belarus, and discontinued trading pairs with the Russian ruble,” it read.

The centralized exchange also noted that this decision cost the company approximately 30% of its user base at the time.

These clarifications come days after Russia’s Prosecutor General announced a ban on WhiteBIT, labeling it an “undesirable organization.”

The move followed Russia’s allegations that the exchange facilitated illegal fund transfers out of the country and helped finance Ukraine’s armed forces.

Alleged Transfers Described As Donations

Russian authorities accused WhiteBIT’s management of transferring approximately $11 million to Ukraine since 2022. In response, WhiteBIT clarified that the funds did not originate from within Russia.

“Over the four years of full-scale war, WhiteBIT has donated around 11 million USD of its own funds to support Ukraine’s defense forces and humanitarian initiatives for civilians,” it said.

Among other allegations, Russian officials claimed that WhiteBIT provided technical support to UNITED24, Ukraine’s state-backed crypto donation platform.

WhiteBIT confirmed that it had worked with United24 by enabling Whitepay, a crypto-processing service used to facilitate cryptocurrency donations for the platform and other humanitarian foundations in Ukraine.

“In total, WhiteBIT and Whitepay have facilitated more than 160 million USD in crypto donations, supporting both humanitarian and defense-related fundraising.”

The exchange concluded by stating that, despite the initial loss of users after exiting the Russian market, its business has grown more than eightfold.

Ukraine Accelerates Crypto Use During War

Although Ukraine has long been an early adopter of cryptocurrencies, adoption accelerated significantly following Russia’s invasion.

Individuals increasingly turned to cryptocurrencies for fundraising and donations, as they offered faster and more efficient ways to deliver funds where they were needed. This shift began even before Russia’s full-scale invasion of Ukraine.

According to an Elliptic report, Ukrainian NGOs and volunteer groups created crypto wallets to receive donations, raising just over $570,000 in 2021 alone.

By February 2022, the Ukrainian parliament passed legislation formally legalizing cryptocurrencies.

One year into Russia’s war on Ukraine, these figures had increased by roughly 122-fold. A 2023 Chainalysis report showed that donations to addresses provided by the Ukrainian government had grown to nearly $70 million.

Cryptocurrency use remains widespread among Ukrainians. While basic legislation has legalized digital assets, authorities continue working toward comprehensive regulation and a formal tax framework.