Russia Bans WhiteBit For Alleged Crypto Transfers To Ukraine’s Military

TLDR

Table of Contents

Russia says WhiteBit moved $11M to Ukraine since 2022, including $900K for drones.
WhiteBit banned in Russia as an “undesirable organization,” with W Group also targeted.
Russia plans to regulate crypto exchanges by July 2027 under new licensing rules.
Central Bank proposes a 300,000 ruble annual crypto limit for non-professional investors.

Russia has banned Ukrainian cryptocurrency exchange WhiteBit and its parent company, W Group, labeling them as “undesirable organizations.” Authorities claim WhiteBit transferred millions of dollars out of Russia to support Ukraine, including for military use. The ban comes as Russia advances strict new regulations for its domestic crypto market.

WhiteBit and W Group Declared Undesirable in Russia

On January 25, 2026, Russia’s Prosecutor General named WhiteBit, a Ukrainian crypto exchange, and its parent company, W Group, as “undesirable organizations.” This legal designation bans them from operating within Russia and blocks any partnerships with Russian entities.

Authorities allege that WhiteBit helped move about $11 million out of Russia since 2022. Nearly $900,000 of that sum was allegedly used to purchase drones for Ukraine’s armed forces. The Prosecutor General’s Office also stated that WhiteBit supported United24, a Ukrainian government-backed crypto donation platform.

Russia’s Prosecutor General has designated Ukrainian crypto exchange WhiteBit as an “undesirable organization,” alleging it was used to illegally move funds out of Russia and to finance Ukraine’s armed forces. The designation also covers WhiteBit’s parent company W Group and its…
— Wu Blockchain (@WuBlockchain) January 25, 2026

Founded in 2018, WhiteBit is based in Ukraine and claims to have more than 8 million users. It reports daily trading volumes of $11 billion for spot trades and $40 billion for futures. Despite its global operations, it will no longer be allowed to function legally in Russia.

Claims of Illicit Transfers and Military Support

Russian officials accuse WhiteBit of carrying out illegal financial schemes to move money out of the country. These alleged actions include providing technical infrastructure to Ukraine’s donation platform and assisting with cross-border crypto operations.

Reports from Russian media claim the company’s activities supported Ukraine’s military during the ongoing conflict. Authorities have framed this as a national security threat, citing WhiteBit’s role in funding military purchases.

Russian law treats “undesirable organizations” as those posing a threat to the country’s security or constitutional order. Businesses and individuals working with such organizations can face administrative or criminal charges.

Russia Expands Domestic Crypto Regulations

At the same time, Russia is introducing tighter controls over its own crypto sector. The Bank of Russia recently outlined a new licensing framework for crypto exchanges and digital depositories. This system aims to go into effect by July 1, 2027.

Ekaterina Lozgacheva, Director of Strategic Development at the Bank of Russia, said that the new rules will make licensing simpler for exchanges that do not handle securities. However, they will also include stricter oversight of financial risks.

Licensed banks and brokers entering the crypto space must meet new safety and reporting standards. Russia aims to allow legal sale of mined cryptocurrencies while cracking down on illegal intermediaries.

Crypto Investment Limits for Individual Investors

The Russian government is also proposing new limits on how much non-professional investors can put into digital assets. The Central Bank has suggested an annual cap of 300,000 rubles per person per intermediary.

Finance Minister Anton Siluanov confirmed support for the restrictions. “To minimize risks, the central bank and I plan to limit the volume of such transactions and investments in the crypto market,” local media quoted him.

Deputy Finance Minister Ivan Chebeskov stated that the limit could be adjusted based on market feedback. He also mentioned that legislation to regulate digital currencies is expected in the first half of 2026.

Crypto Under Scrutiny Amid Ongoing Conflict

The move against WhiteBit signals Russia’s increasing concern over crypto’s role in international conflicts. Officials argue that digital assets are being used to bypass sanctions and fund military operations.

As Russia continues to enforce stricter rules, foreign crypto firms with ties to Ukraine or other conflict zones may face growing pressure. The case of WhiteBit suggests that future crypto operations in Russia will require full legal compliance and closer government supervision.