KUNA Founder Alleges Binance Working With Russia Despite Sanctions

Michael Chobanian, the founder of the Ukrainian cryptocurrency exchange KUNA, has leveled serious allegations against Binance. Chobanian has alleged that despite sanctions in place against Russia, Binance has been closely working with the government of Russia and has been doing so for a considerable amount of time. 

Binance Should Clarify Its Position 

Chobanian made the allegations during an interview and called on Binance CEO Changpeng Zhao to clarify Binance’s position regarding Russia and whether the exchange plans to continue to deal with Russia after the invasion of Ukraine. Zhao has not made any comment regarding his or Binance’s position, which could be a matter of concern due to his ties with the Communist Chinese Party. 

Chobanian stated, 

“The problem with Binance is not just that they still continue working on both sides, it’s that they showed cooperation with the Russian government before the war, and as far as I know, they still continue cooperating with the Russian government.” 

No Plans To Ban Russian Users 

Binance has stated that, as of now, it has no plans to ban Russian users from its platform but stated that it would take stringent action against individuals who have sanctions against them. However, currently, there is no evidence of Binance initiating any action. 

A Binance spokesperson announced that Binance is donating $10 million and launching a crowdfunding site called the Ukraine Emergency Fund. The spokesperson also stated that Binance would not be commenting on any false accusations. 

“We prefer not to comment on false accusations. Our focus is on helping people.”

A Key Market For Binance 

Back in 2019, the Binance CEO had referred to Russia as a key market for Binance. He further stated that Binance is looking for partners in communities, and specifically in Russia. Regarding the sanctions in place against Russia, Zhao responded by stating that the sanctions are not a crypto-specific issue and that blocking all Russians from access to crypto would be unethical. 

However, Russia also seems undecided on crypto, with authorities sending out mixed signals and a clear difference of opinion between the central bank and the government. The Russian central bank recommends banning cryptocurrencies outright, while the Russian government prefers crypto regulation. 

Binance Must Do More 

In an appearance before the United States Senate Committee on Banking, Housing, and Urban Affairs, Chobanian, who also serves as the president of Blockchain Association of Ukraine, stated that Binance was not doing enough against Russia and urged the exchange to take a more aggressive stance against Russia. He stated during the hearing, 

“The first thing we did as a crypto community in Ukraine was to shut down all ruble operations because that was a big hole in the sanctions list. Unfortunately, not all crypto companies followed our lead, mainly Binance.”

However, he acknowledged that crypto could also be vital for Russians trying to flee their country. 

“The only way for them to exist outside of Russia right now is crypto, probably. Obviously, not being able to buy a house or a car, but at least you can survive.”

Status Of Promised Donation

Chobanian also stated that Binance has yet to furnish the promised donation of $10 million. The exchange had stated that it would send the funds to Ukrainian intergovernmental and nongovernmental organizations (NGOs) for relief efforts. 

“They said that they donated $10 million to the Ukrainian government. Well, I haven’t seen that $10 million. No one knows where that went.”

Binance, on the other hand, claims that it has already donated $2.5 million, with details listed on its website. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.