WhiteBIT denied the claims made by the Russian prosecutor general. Russia alleged that WhiteBIT assisted in transferring money out of Russia to finance Ukraine's armed forces.
The Ukrainian crypto exchange said it ceased operations in Russia after the war between the countries began.
WhiteBIT says no to Russia's accusations
In an official statement, WhiteBIT rejected Russia's ban. The company stated that it completely ceased operations in the country shortly after Russia invaded Ukraine.
"After Russia launched its large-scale invasion of Ukraine in 2022, WhiteBIT took a clear stance: the company blocked all users from Russia and Belarus and ceased trading with the Russian ruble," the statement read.
The centralized exchange also pointed out that this decision caused them to lose about 30% of their users at that time.
These clarifications came just a few days after Russia's prosecutor general banned WhiteBIT and labeled the company as an "undesirable organization."
The ban came after Russia claimed that the exchange helped transfer illegal money out of the country and support Ukraine's armed forces.
Alleged transfers are described as donations
Russian authorities accused WhiteBIT's management of transferring approximately 11 million USD to Ukraine since 2022. In response, WhiteBIT clarified that the funds did not come from Russia.
"During the four years of large-scale war, WhiteBIT has donated around 11 million USD of its own funds to Ukraine's defense and humanitarian efforts for civilians," they said.
Among other allegations, Russian officials claimed that WhiteBIT provided technical support to UNITED24, Ukraine's state-supported platform for crypto donations.
WhiteBIT confirmed that they were collaborating with United24 by activating Whitepay, a crypto payment service that allowed donations to the platform and other humanitarian organizations in Ukraine.
"In total, WhiteBIT and Whitepay have facilitated over 160 million USD in crypto donations that have supported humanitarian and defense-related assistance."
The exchange concluded by saying that, despite the initial user loss after they left Russia, their business has grown more than eight times.
Ukraine is increasing the use of crypto during the war
Ukraine has been using cryptocurrencies for a long time, but usage increased rapidly after Russia's invasion.
More and more people used cryptocurrencies for fundraising and donations, as they were faster and more efficient. This trend began even before the large-scale war between Russia and Ukraine.
According to a report from Elliptic, Ukrainian volunteer organizations opened crypto wallets to receive donations and raised over 570,000 USD just in 2021.
In February 2022, the Ukrainian parliament passed a law that made cryptocurrencies legal.
A year after Russia's war against Ukraine, the figures had increased by approximately 122 times. A report from Chainalysis 2023 showed that donations to addresses specified by the Ukrainian government had nearly reached 70 million USD.
Cryptocurrencies are still widely used by Ukrainians. Although basic laws now allow digital assets, authorities are continuing to develop complete regulation and a formal tax system.