Binance denies disclosing user data with Russian authorities, calling charges ‘categorically false’

Binance, the world’s largest cryptocurrency exchange by trading volume, has reacted to allegations that it shared user data with Russian regulators and FSB-controlled institutions.

On April 23, in a blog post intended at’setting the record right,’ Binance dismissed the claims that it was sharing any user data, including that of Alexei Navalny, ‘categorically false.’

The company flatly denied assisting Russian intelligence in the tracing down of donations to opposition leader Alexei Navalny.

Binance said: “Suggestions that Binance shared any user data, including Alexei Navalny, with Russian FSB controlled agencies and Russian regulators are categorically false.”

Added: “On the specific matter of not sharing data – today, any government or law enforcement agency in the world can request user data from Binance as long as it is accompanied by the proper legal authority. Russia is no different. Fulfilling disclosure obligations to the authorities in each jurisdiction is a large part of becoming a regulated business and Binance fulfills its legal obligations.”

Following a Reuters Special Report indicating that Binance’s regional chief met with Russia’s financial intelligence agency in April 2021, news surfaced on Friday, April 22 that Binance was exchanging client data with Russia.

Russian intelligence, according to reports, wants Binance to share client data in order to aid in the battle against crime. Additionally, Russian intelligence was attempting to track down Russian opposition leader Navalny’s Bitcoins (BTC), which were estimated to be worth millions of dollars, according to the report.

Binance’s head of Eastern Europe and Russia, Gleb Kostarev, is alleged to have consented to the request, informing a “business associate that he didn’t have much choice in the matter,” according to reports.

Binance declared in a blog post that it will “writing a formal complaint to Reuters under their own editorial code.” Furthermore, the communication disclosed the entirety of an email conversation with the outlet about its Russian activities.

Binance restricts services in Russia

It’s worth noting that Finbold revealed on April 21 that Binance’s plan to restrict services to Russian individuals or businesses with crypto assets worth more over 10,000 euros ($10,885).

“As soon as the war started, we stopped working in Russia. Instead, we aggressively implemented sanctions against Russia. Today, Binance is the only crypto exchange in the world to implement the latest package of measures against Russian account holders,” Binance said.

The cryptocurrency exchange was forced to place limits on the usage of its services by persons or businesses with a Russian headquarters as part of the European Union’s fifth set of sanctions against Russia.

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