Russia is set to ban WhiteBit, alleging that the crypto exchange facilitated support for Ukraine’s war effort.
The Prosecutor General’s Office of the Russian Federation released a statement labelling the platform and its affiliated organizations as “undesirable”, while alleging that funds from WhiteBit were used to procure drones by the Ukrainian Forces.
“A foreign cryptocurrency exchange that finances the Ukrainian regime has been declared undesirable in the Russian Federation,” the statement read.
Under Russia’s statute on “undesirable organisations,” firms recognised as such must discontinue activity in the nation. Further, individuals or businesses who comply with such entities face fines and criminal prosecution that might lead to prison time.
WhiteBIT transferred $11M to the Ukrainian defence
According to the prosecutor general, WhiteBIT’s management transferred around $11 million in 2022 to Ukrainian defense-related purposes, including funding for drone purchase.
Moscow also accused the platform of facilitating “grey” operations to transfer monies out of Russia.
The $11 million number stated by Russian officials is largely consistent with data published on WhiteBIT’s website, where the exchange has openly acknowledged charity contributions to Ukraine-related activities since the beginning of the crisis.
Additionally, Lithuania-based WhiteBIT has publicly stated that it supports Ukraine. According to the company’s website, the exchange formerly claimed to have supplied technological infrastructure for United24, a cryptocurrency-enabled fundraising platform that was started at the initiative of Ukrainian President Volodymyr Zelenskyy for defence and humanitarian purposes.
Russia’s action highlights debate over crypto’s role in wartime finance
Russia’s move to block WhiteBit taps into a long-running argument about where crypto fits in wartime finance.
After Russia invaded Ukraine in 2022, the nation has tried curbing any means of digital asset assistance that can go towards the other side of the border.
Exchanges have largely resisted broad bans, saying they would follow sanctions laws but wouldn’t shut out entire populations unless legally required.
On the other hand, Ukraine has also been steadily tightening the screws on crypto firms it believes are quietly helping Russia move money despite sanctions.
Kyiv has slapped sanctions on several companies, including some linked to Russia, accusing them of acting as backdoors for war-related funding and sanctions evasion.
In practical terms, that means frozen assets and blocked operations. Officials say as banks and traditional payment routes closed, digital assets became an attractive workaround and one they can’t afford to ignore.
The move underscores how seriously Ukraine is treating crypto as a real battlefield in modern financial warfare.