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WhiteBeat has denied allegations made by a Russian prosecutor that he facilitated illegal money transfers out of Russia to finance the Ukrainian armed forces.
The Ukrainian digital currency exchange has confirmed that it has stopped operating on Russian territory since the outbreak of the crisis between the two countries.
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WhiteBIT rejects Russia’s accusations
In an official statement, WhiteBIT responded On the Russian banconfirming that it completely stopped its operations in the country shortly after the invasion of Ukraine by Russia.
“After the start of Russia’s invasion of Ukraine in 2022, WhiteBIT took a principled position: it blocked all users from Russia and Belarus, and stopped trading pairs with the Russian ruble,” the report says.
The Central Stock Exchange also noted that this decision cost the company about 30% of its user base at the time.
These clarifications come days after the Russian Prosecutor General announced a ban on WhiteBIT, describing it as an “undesirable organization”.
The move came after Russia’s allegations that the stock market Facilitated illegal money transfers out of the country and helped finance the Ukrainian armed forces.
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The alleged transfers were described as donations
Russian authorities have accused WhiteBIT management of transferring about $11 million to Ukraine by 2022. In response, WhiteBIT clarified that the funds were not issued by Russia.
“Over the course of four years of total war, WhiteBIT donated about 11 million dollars of its funds to support the Ukrainian Defense Forces and humanitarian initiatives for civilians,” he said.
Among other accusations, Russian officials alleged that WhiteBIT provided technical support to UNITED24, a Ukrainian state-backed cryptocurrency donation platform.
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WhiteBIT has confirmed that it has joined forces with United24 by activating Whitepay, a digital currency processing service. Used to facilitate cryptocurrency donations For the platform and other humanitarian institutions in Ukraine.
“In total, WhiteBIT and Whitepay have facilitated more than $160 million in crypto donations, supporting humanitarian and defense fundraising.”
The exchange concluded by saying that, despite the initial loss of users after its exit from the Russian market, its business grew more than eight times.
Ukraine accelerates the use of digital currencies during the war
Although Ukraine has long been an early adopter of cryptocurrencies, However, the adoption of digital currencies has accelerated significantly After the invasion of Russia.
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Individuals have increasingly turned to digital currencies to raise funds and donations, as they have provided faster and more efficient ways to deliver money where it is needed. This change began even before Russia’s invasion of Ukraine.
According to a report by Elliptic, Ukrainian NGOs and volunteer groups have set up cryptocurrency wallets to receive donations, It has raised more than $570,000 In 2021 only.
In February 2022, the Ukrainian Parliament passed legislation officially legalizing cryptocurrencies.
A year after Russia’s war on Ukraine, these numbers have increased about 122 times. A report by Chainalysis 2023 showed that donations to addresses made by the Ukrainian government It grew to nearly $70 million.
The use of digital currencies is still widespread among Ukrainians. While the primary legislation has codified digital assets, the authorities continue to work towards a comprehensive regulation and a formal tax framework.
