Cryptocurrency exchange Whitebit caught laundering Russian money: details of high-profile investigation

According to a report by the human rights organization NON-STOP , the Whitebit cryptocurrency exchange, despite its fame, was actually created so that MPs from pro-Russian parties with ties to Russia could legalize and launder money earned in Ukraine.

Deputies Dmytro and Mykyta Shentsev are the main sponsors and founders of the exchange, controlling more than 60% of the business. According to the organization, they use the company for personal enrichment and to transfer money from illegal businesses abroad.

The real owners of the Whitebit exchange

In their investigation, human rights activists found out that the real owner is not Vladimir Nosov, a popular media face of the exchange, but Dmytro and Mykyta Shentsev. Since they hold the main share of the company.

Dmytro Shentsev

Dmytro Shentsev, a pro-Russian MP, was elected to the Verkhovna Rada from the "Party of Regions" and later the "Opposition Bloc". He has a long political history and close ties to Russia. In 2018, he voted against the Law on Recognizing Ukrainian Sovereignty over the Occupied Territories of Donetsk and Luhansk Oblasts. After Russia’s invasion of Ukraine, he missed all sessions of the Verkhovna Rada and voluntarily gave up his parliamentary mandate. Shentsev received Russian awards for the development of Russian culture and language abroad. According to various media outlets, he left Ukraine and is withdrawing his funds, including through the Whitebit cryptocurrency exchange.

Mykyta Shentsev is the second co-owner of the Whitebit cryptocurrency exchange. Son of Dmytro Shentsev. Former Kharkiv deputy from the "opposition platform - for life". In 2022, Mykyta Shentsev wrote a statement of resignation of his own free will. Earlier, the media reported that he had a Russian passport. In 2023, he was deprived of citizenship by decision of the President of Ukraine.

According to the human rights organization NON-STOP, the Whitebit exchange was created for the purpose of tax evasion and legalization of funds from a shadow business created by former pro-Russian deputies. The main sponsors and owners of the exchange with a 60% share are Dmytro and Mykyta Shentsev, who use the company for personal enrichment and transfer of funds abroad. A popular figure in the country’s blockchain market, Volodymyr Nosov, is the founder of Whitebit only nominally. Former deputies and their colleagues from the opposition camp use the exchange to withdraw funds, which they then spend on purchasing real estate abroad, luxury cars and business development. And this is happening during a war.

Whitebit Exchange Expectation/Reality

Volodymyr Nosov, CEO of Whitebit, is actively shaping the company’s pro-Ukrainian image. The exchange took a surprisingly active civic position after the 24th, translating its website into Ukrainian, speaking out against the operation of the Binance exchange in Russia, and collaborating with well-known Ukrainian media personalities to promote the idea that only on Whitebit are Ukrainians’ funds safe.

However, the published investigation suggests that this is just a disguise for the realities that have formed due to the Russian invasion of Ukraine. In fact, the Whitebit exchange itself is involved in laundering Russian money. The company was created by deputies who for many years created the ground for pro-Russian sentiments and destabilization of the country.

Moreover, the advanced blockchain technologies that Whitebit points out are supposed to make life easier for Ukrainians actually serve to legitimize the shadow financial transactions of its real owners.

Money Laundering Schemes. Source.

Pre-trial investigation of the Whitebit exchange

Human rights activists have already contacted the relevant regulatory authorities to obtain a legal assessment regarding Whitebit: the Office of the Prosecutor General, the Ministry of Finance of Ukraine, the Security Service of Ukraine, the Bureau of Economic Security of Ukraine, etc.

A group of activists is asking the authorities to look into Whitebit’s activities:

explore financial flows through the exchange of real owners
find out if other people are involved in money laundering through the Whitebit exchange
check for company connections with the aggressor country
identify key individuals and legal entities that have become the main investors in Whitebit
check the main beneficiaries, where the financial flows go

The investigation by regulatory authorities at the request of human rights activists and the pre-trial investigation by the High Anti-Corruption Court of Ukraine indicate the seriousness of the accusations against the Whitebit exchange. The investigation will determine the extent of the exchange’s involvement in money laundering and the use of Ukrainians’ funds to satisfy the interests of key sponsors. It will also check for the company’s connections with the aggressor country, participation in international transnational financial channels, which may be dangerous for the national security of Ukraine. All these measures are aimed at protecting the interests of citizens and ensuring the security of funds invested on the Whitebit exchange.

Politika