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Binance denies that it was approached by Russian authorities to hand over client data: Report
As per a report from Reuters, the regional head of Binance, the world's biggest cryptocurrency exchange, met with Russia's financial intelligence unit in Moscow and the latter asked the former to hand over the data belonging to its customers in the nation. The Russian authority wanted names and addresses, to help them fight crime, as per text messages the regional head sent to a business associate.
Binance supplied data to Russian authorities?
The report stated the events from April 2021 in which Rosfinmonitoring or Rosfin, a Russian agency, was on the path of tracking millions of dollars in Bitcoin raised by the jailed Russian opposition leader Alexei Navalny. A source close to the matter said that Navalny was using the funds to fund efforts to expose coruption prevalent in the Vladimir Putin-led government.The head of operations of Binance in Eastern Europe and Russia, Gleb Kostarev agreed to provide the data required by Rosfin, the messages between Kostarev and another business associate showed. Kostarev told the associate that he didn't have "much of a choice" and had to agree. When reached out, Kostarev did not respond.
On the other hand, Binance told that Russian authorities never approached them regarding Navalny and that the exchange was "actively seeking compliance in Russia" before the war with Ukraine began which would've forced the exchange to acept "appropriate requests from regulators and law enforcement agencies."
Behind-the-scenes efforts to build ties with Russian government
As per the conversation between Kostarev and the business associate, it seems that Binance aimed to build tied with the Russian government. Reuters interviewed over then people including former employees, ex-business partners and crypto industry executives, and also reviewed text messages that Kostarev sent to people outside the company to confirm the behind-the-scenes efforts of the exchange.On the other hand, Cryptonary previously reported that the exchange wants to expand into Russia and neighbouring countries despite the current sanctions being imposed against the banks, and other firms in the nation.
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