Russia has moved to criminalize dealings with the whitebit exchange, underscoring how digital assets have become entangled in the financial front of the war in Ukraine.
Summary
Russia declares WhiteBIT an undesirable organization
Russia has formally banned Ukrainian-founded cryptocurrency platform WhiteBIT, marking a further escalation in its crackdown on firms it claims are backing Ukraine‘s war effort. The decision, announced by the office of Russia’s prosecutor general, designates WhiteBIT and its parent company W Group as “undesirable organizations.”
Under Russian law, the “undesirable” label effectively makes any cooperation with the company a criminal offense within the country. Moreover, Russian citizens who use the platform, promote it, or provide services to it now risk prosecution and potential prison sentences under the criminal code.
Accusations of gray schemes and military support
According to Russian authorities, the exchange has allegedly built what they call “gray schemes” to move capital out of Russia. Officials also accuse WhiteBIT of providing financial and technical infrastructure to support the Ukrainian military since the beginning of the full-scale invasion in February 2022.
Prosecutors claim that at least $11 million was directed to Ukraine’s armed forces, including nearly $1 million earmarked for drone procurement. However, the company has framed these activities as transparent support for national defense and humanitarian needs rather than covert schemes.
WhiteBIT’s response and exit from the Russian market
WhiteBIT, founded in 2018 by Ukrainian entrepreneur Volodymyr Nosov, told CoinDesk that the Russian move only strengthens its resolve to back Ukraine’s war effort. The company emphasized that it had already halted operations in the Russian market shortly after the invasion began.
The exchange said it blocked all users from Russia and Belarus in early 2022 and delisted trading pairs denominated in the ruble. That decision, by its own account, cost around 30% of its customer base at the time. However, executives argue that the move was consistent with its values and long-term strategy.
Ukrainian authorities push for broader crypto restrictions
One year into the war, Ukraine’s Ministry of Digital Transformation launched a coordinated effort to limit Russian access to major trading venues. In that campaign, the ministry sent official requests to platforms including Coinbase, Binance, Bybit and WhiteBIT, urging them to block Russian users.
At the time, some large U.S. and global exchanges, such as Coinbase and Kraken, signaled they would not implement a blanket ban on Russian-linked accounts without clear legal mandates. Instead, they pledged to restrict activity involving individuals and entities explicitly named on sanctions lists. That said, pressure from Kyiv and Western regulators has kept the issue on the agenda.
Growth, user expansion and the U.S. market
Despite the loss of a significant portion of its early user base, WhiteBIT says it has expanded rapidly since leaving the Russian market. The company reports that its customer numbers have grown eightfold, now exceeding 8 million users globally.
Moreover, the platform has entered the U.S. market, signaling ambitions to compete with established global players. This growth trajectory, combined with its explicit support for Ukraine, has kept the whitebit exchange firmly in Moscow’s crosshairs.
Crypto donations and Whitepay’s role
Russian prosecutors highlight that WhiteBIT has actively supported Ukraine’s military and humanitarian response using digital assets. The exchange confirms that it has donated approximately $11 million of its own funds to defense initiatives and civilian relief during what it describes as “four years of full-scale war.”
The company’s payments subsidiary, Whitepay, has also become a key channel for digital fundraising. According to figures cited by Russian authorities and confirmed by WhiteBIT, Whitepay has processed over $160 million in cryptocurrency donations to support both defense and humanitarian projects. These flows underscore how crypto rails can bypass traditional banking routes in conflict zones.
Legal risks for Russian users
With the new designation in place, any Russian citizen who interacts with WhiteBIT now faces tangible legal risk. The “undesirable organizations” framework allows law enforcement to pursue criminal charges for a wide range of activities, from using the platform to providing any form of assistance.
In its statement, the company insisted that its actions “reflect the company’s values and civic position as a business with roots in Ukraine operating during wartime.” However, Russia’s move also signals to other crypto platforms that perceived support for Ukraine can trigger severe responses, deepening the geopolitical fault lines running through the digital asset sector.
In summary, Moscow’s ban on WhiteBIT and W Group formalizes a sharp break that began when the exchange exited Russia in 2022, while highlighting how cryptocurrency platforms, donations and compliance choices are increasingly shaped by the realities of war.
