WhiteBIT firmly responds to Russia's ban order! Fully exited the Russian market in 2022

Ukrainian cryptocurrency exchange WhiteBIT has strongly refuted allegations of a Russian ban, stating that it has completely withdrawn from the Russian market since 2022. Russia accused it of transferring $1100 to fund the Ukrainian army, but WhiteBIT clarified that it was a donation from the company’s own funds and facilitated a $1.6 billion cryptocurrency donation through Whitepay. The exchange lost 30% of its user base after leaving Russia, but its business subsequently grew 8x.

WhiteBIT took the initiative to cut off the Russian market in 2022

In its official statement, WhiteBIT made it clear that following Russia’s full-scale invasion of Ukraine in February 2022, the company took a principled stance, immediately blocking all users from Russia and Belarus and halting trading pairs with the Russian ruble. This decision caused significant business losses at the time, with the centralized exchange noting that it caused the company to lose about 30% of its user base at the time.

For a crypto exchange in the midst of growth, voluntarily giving up 30% of its user base is an extremely rare decision that requires immense courage. Most cryptocurrency platforms often choose to remain neutral or only act when required by regulators in the face of geopolitical conflicts. WhiteBIT’s active exit indicates that its management prioritizes values over short-term business interests, which is not common in the profit-oriented cryptocurrency industry.

This stance is closely tied to WhiteBIT’s identity as a local Ukrainian business. When Russian forces invaded Ukraine, the company’s employees, offices, and infrastructure were directly threatened by war. In this context, continuing to provide services to Russian users is not only morally unacceptable, but may also trigger a strong backlash from the Ukrainian government and the public. WhiteBIT’s quick response demonstrates its support for its homeland while also serving as a survival strategy.

However, the Russian authorities are clearly extremely unhappy with this position of WhiteBIT. Just a few days ago, Russia’s Prosecutor General announced the banning of WhiteBIT, classifying it as an “undesirable organization.” This label is commonly used by foreign entities that Russia perceives as a threat to its national security, including NGOs, media outlets, and political groups. The inclusion of a cryptocurrency exchange in this list is unusual, showing Russia’s strong response to WhiteBIT’s support for Ukraine’s activities.

Russia’s allegations allege that WhiteBIT facilitated the transfer of illegal funds out of the country and helped fund the Ukrainian armed forces. Specifically, Russian authorities accused WhiteBIT’s management of transferring approximately $11,000,000 to Ukraine since 2022. The timeframe of these allegations coincides with WhiteBIT’s announcement of its withdrawal from the Russian market, indicating Russia’s attempts to portray the company’s humanitarian donations as illegal activities.

The $11,000,000 donation was not from Russia

WhiteBIT provided a detailed clarification on Russia’s allegations. The company made it clear that the $11,000,000 allegedly transferred was not illegal funds from within Russia, but rather money donated by WhiteBIT itself from the company’s own funds during the four-year full-scale war to support the Ukrainian Defense Forces and humanitarian aid projects for civilians.

This clarification sheds light on the core loopholes in the Russian allegations. If WhiteBIT had already completely blocked Russian and Belarusian users in February 2022 and stopped trading the ruble trading pair, the company would not technically be able to “transfer” funds from within Russia. The alleged $11,000,000 is more likely a voluntary donation by WhiteBIT to Ukraine’s defense and humanitarian causes, using its operating income in other markets, such as Europe, Asia, or Latin America.

Such donations are not uncommon among cryptocurrency businesses in Ukraine. Many Ukrainian blockchain companies, exchanges, and project parties have been actively involved in fundraising activities during the war, using a portion of business profits to support national defense. For these companies, this is not only a corporate social responsibility, but also a patriotic obligation at the critical juncture of the country’s survival. WhiteBIT’s $11,000,000 donation is a larger contribution in the industry.

WhiteBIT’s exit from the Russian market timeline and impact

February 2022: Immediately after the outbreak of the Russia-Ukraine war, Russian and Belarusian users were blocked

Trading pair adjustment: Stop all trading pairs against the Russian ruble

User losses: Lost about 30% of the user base in the early stages

Subsequent growth: The business then grew more than 8 times

Donation scale: Approximately $11,000,000 in self-funded funds over four years

Russian officials also claimed that WhiteBIT provided technical support to United24, a Ukrainian state-backed cryptocurrency donation platform. In this regard, WhiteBIT not only did not deny it, but publicly confirmed the cooperation. The company said it had partnered with United24 to enable Whitepay, a cryptocurrency processing service specifically designed to facilitate cryptocurrency donations to the platform and other humanitarian foundations in Ukraine.

Whitepay’s technical architecture allows global donors to easily donate using various cryptocurrencies, and the system automatically handles currency conversion and wallet management, lowering the technical threshold for donations. This convenience significantly enhances donation efficiency, with WhiteBIT disclosed that the company and Whitepay have collectively facilitated over $160,000,000 in cryptocurrency donations, supporting humanitarian and defense-related fundraising efforts.

This figure of $160,000,000 far exceeds the $11,000,000 alleged by Russia, indicating that WhiteBIT played a much greater practical role during the war than the Russian side claimed. The company not only donated its own donations but also built a platform that allows hundreds of thousands, if not millions, of supporters around the world to provide financial assistance to Ukraine. This technology-enabled charity model is a typical application of cryptocurrency in the humanitarian field.

Crypto donations in Ukraine skyrocketed from $570,000 to $70,000,000

Although Ukraine has long been an early adopter of cryptocurrencies, their adoption has accelerated significantly after the Russian invasion. Due to their ability to get money where it is needed faster and more efficiently, people are increasingly turning to using cryptocurrencies for fundraising and donations. This shift began even before Russia’s full-scale invasion of Ukraine.

According to a report by blockchain analytics firm Elliptic, Ukrainian NGOs and volunteer groups began creating crypto wallets to receive donations before the war, raising over $570,000 in 2021 alone. This figure was inconspicuous at the time, but it foreshadowed the potential role of cryptocurrencies in Ukrainian civil society.

By February 2022, the Ukrainian parliament passed legislation that officially legalized cryptocurrencies. The timing of this legislation is no coincidence, it occurred in the same month as Russia’s full-scale invasion. The Ukrainian government quickly recognized the strategic value of cryptocurrencies in wartime fundraising and accelerated the establishment of a regulatory framework that allowed government agencies and legitimate organizations to openly accept cryptocurrency donations.

The growth in numbers is astounding. Chainalysis’ 2023 report shows that donations received through addresses provided by the Ukrainian government have increased to nearly $70,000,000, representing an increase of approximately 122 times in just two years. This explosive growth reflects a combination of factors: global sympathy for Ukraine’s plight, active mobilization of the cryptocurrency community, and the efficiency advantages of crypto payments over traditional bank transfers.

The advantages of cryptocurrency donations are particularly evident in wartime. Traditional bank transfers can take days and are subject to international sanctions, disruptions in the banking system, and bureaucratic procedures. In contrast, cryptocurrency transfers can be completed in minutes, sent directly to a wallet address in Ukraine from anywhere in the world, without the need for intermediary approval. This speed and accessibility can potentially save lives in emergency situations.

Cryptocurrencies are still widely used in Ukraine. While the underlying law has legalized digital assets, authorities are still working to improve the regulatory system and formal tax framework. The Ukrainian government recognizes that cryptocurrencies are not only a fundraising tool during wartime, but also a significant component of post-war economic reconstruction. The country is studying how to establish better cryptocurrency exchange regulations, tax policies, and consumer protection measures.

WhiteBIT business bucked the trend and grew 8x strategic transformation

WhiteBIT concluded its statement by revealing a surprising business result: despite initially losing 30% of users after exiting the Russian market, the company’s business subsequently grew more than 8 times. This number reveals several important business insights.

Firstly, ethical stance can translate into a business advantage. WhiteBIT’s decisive decision to withdraw from the Russian market has earned widespread respect in the international community. Many users in Europe, North America, and other regions may choose the platform precisely because of WhiteBIT’s values, over other exchanges that remain neutral or continue to serve Russian users. This “values-driven user acquisition” is particularly effective among the younger generation.

Secondly, exiting the Russian market allows WhiteBIT to focus on regions with more growth potential. The Russian market, while huge, has questionable long-term value against the backdrop of Western sanctions and the depreciation of the ruble. In contrast, emerging markets in the European Union, Latin America, and Asia offer more stable and rapid growth opportunities. WhiteBIT’s reallocation of resources to these regions could be key to its 8x growth.

Third, the brand effect of Ukraine as a symbol of “anti-Russia”. Against the backdrop of widespread sympathy for Ukraine in global public opinion, WhiteBIT, as a local Ukrainian company, has gained a unique brand advantage. The company is not just a cryptocurrency exchange but also a symbolic avenue to support Ukraine. Many users choose WhiteBIT not only for trading but also to show their support for Ukraine.