A Russian military court sentenced 49-year-old IT specialist Yuri Belenkiy to 13 years in prison on Monday after cryptocurrency exchange Binance provided Russian investigators with his transaction history, revealing donations to Ukrainian fundraising campaigns.
The Bottom Line
The Sentence: Belenkiy received three years in prison followed by 10 years in a strict-regime penal colony, alongside a 500,000 rouble ($6,300) fine.
The Evidence: Court documents confirmed that Binance handed over transaction records detailing 15 cryptocurrency transfers worth over 120,000 roubles ($1,500) sent between August 2022 and March 2024.
The Compliance Question: Legal experts note that Binance departed Russia in 2023 and faced no legal obligation to hand over the data, while potentially violating European Union data protection laws due to Belenkiy holding a Bulgarian residence permit.
Military Court Delivers 13-Year Verdict in Moscow
The 2nd Western District Military Court in Moscow delivered the 13-year sentence after prosecutors requested a 14-year term for financing terrorism. Belenkiy, the former IT director of the company DiHouse, was arrested in September of last year when he flew to Moscow for a visit and has remained in police custody since. Court records showed the funds went toward Ukraine’s armed forces and the Azov battalion, which Russia designates as a terrorist organisation. Belenkiy denied the charges, and his defense team stated they will appeal the verdict.
Cryptocurrency Traces and Legal Disputed Data
Investigators relied heavily on digital breadcrumbs left across blockchain ledgers. The payments were traced back to online fundraising appeals posted by Arkady Babchenko, an exiled Russian critic of the Kremlin who supports Ukraine. Yevgeny Smirnov, a lawyer with the rights group First Department, stated that the response from Binance served as key evidence in the criminal case against Belenkiy. However, during court proceedings, the defense questioned whether the data genuinely originated from Binance, pointing out that the exchange has not cooperated with Russia since 2022.
| Case Metric | Details |
|---|---|
| Defendant | Yuri Belenkiy (Age 49) |
| Total Transfers | 15 cryptocurrency transactions over 120,000 roubles ($1,500) |
| Prosecution Demand | 14 years |
| Final Sentence | 3 years prison + 10 years strict-regime penal colony + 500,000 rouble fine |
Regulatory Conflict Over Cross-Border Data Sharing
The disclosure of transaction data by a major cryptocurrency platform highlights persistent friction between foreign digital asset firms and compliance demands. Mike Bystrov, a lawyer specializing in crypto regulation, noted that Binance was under no obligation to provide Belenkiy’s data. Furthermore, because Belenkiy holds a Bulgarian residence permit, Bystrov noted that Binance may in fact have been obliged under European Union data protection law not to do so. When asked about the sentence, Binance reiterated a previous statement asserting that the platform does not make or enforce the laws of any jurisdiction, determine charges, or decide how any government uses information in legal proceedings, maintaining a policy of declining comment on confidential law enforcement requests.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
