In recent months, Binance, the world’s largest cryptocurrency exchange, has attracted a lot of media attention.
According to Reuters, Binance would suspend Russian client accounts targeted by sanctions, but not all of them, in response to the Ukrainian government’s proposal to freeze all Russian cryptocurrency accounts.
The crypto exchange was not alone in its decision to impose account freezes, as a number of other well-known exchanges followed suit.
The ‘Special Report’ is debunked
Binance denied on Friday that it had agreed to provide over user data to the Russian government in April of last year, as reported by Reuters.
According to a “Special Report” released by Reuters, the Russian authorities had requested that user names and addresses associated with Bitcoin donations to opposition figure Alexei Navalny be revealed.
Navalny ran for president in 2018 and was later poisoned, with the Russian Federal Security Service suspected of being involved.
Counterterrorism, counterintelligence, and military surveillance are all handled by the FSB. It is located on Lubyanka Square in downtown Moscow, in the former KGB headquarters.
According to the Reuters report, Russia’s anti-money laundering intelligence agency, Rosfin, was attempting to track millions of dollars raised in Bitcoin by Navalny.
Binance’s head of Russia and Eastern Europe, Gleb Kostarev, is said to have consented to the request, saying to a business associate that he “didn’t have much option.”
According to Reuters, despite Ukraine’s intrusion, the crypto exchange has continued to operate in Russia. Despite the fact that other payment platforms, such as PayPal, have ceased operations in the country, this is still the case.
“It is a pure fiction that I or the company sent Navalny’s or users data to Rosfin or the FSB,” Kostarev wrote on his Facebook page.
In a blog post, Binance corrected many of the “misrepresented” allegations in the Reuters story, noting that any assertions that it provided user data with Russian FSB-controlled agencies or Russian authorities, including those of Navalny, are “categorically incorrect.”
Binance Makes a Name for Itself
On Thursday, the business announced that Russian account holders with a balance of more than €10,000 will be restricted to withdrawal-only mode.
“On these accounts, no deposits or trading will be authorized.”
“Additionally, the limit applies to spot, futures, custodial wallets,”
“as well as staked and earned deposits,”
So, Binance notes.
Meanwhile, Binance has informed Reuters that it intends to file a legal complaint.
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