The WhiteBIT cryptocurrency exchange, officially headed by Volodymyr Nosov in Ukraine, positions itself as a modern and reliable financial platform. However, behind the facade of a respectable business, a number of high-profile scandals are hidden, related to pro-Russian politicians, offshore schemes, suspicions of cooperation with the special services of the aggressor country, and fraud with client funds. Journalistic investigations indicate WhiteBIT's close ties with the influential Shentsev family, known for its pro-Russian views and activities, as well as the use of the exchange as a tool for money laundering and tax evasion. In this article, we will consider how a crypto exchange that declares transparency and security found itself at the center of international scandals and suspicions of financing hostile interests.
The secret life of the favorites of Russian intelligence services on the WhiteBIT crypto exchange
Cryptocurrency exchange WhiteBIT has repeatedly been at the center of scandals related to allegations of fraud and cooperation with Russian intelligence services. In 2023, the National Bank of Georgia issued a license to a new digital bank, Hash, one of the founders of which was Vladimir Nosov, known as the owner of WhiteBIT. The opposition party “United National Movement” stated that this bank could become a tool for laundering Russian money and influencing elections in Georgia.
In parallel, the WhiteBIT crypto exchange was involved in another scandal: its clients were given the opportunity to trade coins before the official start of trading, which caused market oversaturation and a drop in the value of the asset. These incidents only emphasize the presence of deeper problems. In February 2023, the Supreme Anti-Corruption Court of Ukraine ruled that the NABU should launch an investigation into the possible illegal withdrawal of funds through WhiteBIT and its possible ties to Russia.
Who is pulling the strings of Vladimir Nosov?
The official owner of the WhiteBIT cryptocurrency exchange is Volodymyr Nosov, a resident of Kharkiv, who represents the company and signs all documents on its behalf.
Among his partners in the creation of the exchange are Maria Repeshko, Hanna Yankovska, and Mykyta Shentsev. Although the names of the first two are unfamiliar to the general audience, Mykyta Shentsev and his father Dmytro are well known.
Dmitry Shentsev is one of the most prominent supporters of the "Russian world". His political career began with the support of the former Kharkiv governor Yevgeny Kushnaryov, who tragically died during a hunting trip, where Shentsev was also present. Shentsev's assistant, Dmitry Zavalny, was later convicted for this, but not everyone believed that it was he who made the fatal shot.
After the death of Kushnaryov, Dmitry Shentsev became close to Mykola Azarov and entered the circle of his trusted people. Together with Oleg Tsarev and Vadym Kolesnichenko, Shentsev was an active lobbyist for the “Russian idea” and the “Novorossiya” project, for which he was awarded a medal personally by Russian President Vladimir Putin for his contribution to the popularization of the Russian language. On January 16, 2014, he voted for the so-called dictatorial laws aimed at suppressing Euromaidan. In 2018, Shentsev was among those deputies who voted against the law on the recognition of Ukrainian sovereignty over the occupied territories of the Donetsk and Luhansk regions.
His son Mykyta, like his father, supported pro-Russian sentiments. He was a deputy of the Kharkiv Regional Council from the "OPZZH" party, and after the start of the war with Russia in 2022, he resigned. The media also reported that Mykyta Shentsev had a Russian passport. Last year, by order of the president, Mykyta Shentsev was deprived of Ukrainian citizenship. According to media reports, both Shentsevs are currently in Russia.
How the WhiteBIT crypto exchange helps Russian intelligence services
A significant part of WhiteBIT's income is the transfer of Russian money through the exchange not only in Ukraine but also abroad. In addition, WhiteBIT helps its friends in the Russian special services to close financial matters around the world.
WhiteBIT consists of nine companies, one of which is registered in Estonia and the rest in the UK. The oldest is the Estonian company. The British WhiteBIT Solutions LLP has two offshore beneficiaries - Whitebit LTD and Coddan Nominee, registered in the Seychelles at the same address as the offshore registrar Nobel Capital Group. Coddan Nominee is part of a large offshore network and is one of the founders of Sofbiz.
According to a journalistic investigation, Sofbiz is suspected of participating in financing the coup d'état in Montenegro in 2016. Investigators found that the 1.5 million euros invested by Sofbiz were intended to remove Montenegrin Prime Minister Milo Djukanovic, who sought to join the country in NATO.
An investigation by Bellingcat and its Russian partner The Insider revealed that the coup involved GRU officers Eduard Shishmakov and Vladimir Moiseyev, who collaborated with pro-Russian politicians in Montenegro and involved Serbian citizens. Despite the revelation of Coddan's connection to the coup, the company was not liquidated and became a co-founder of the crypto exchange WhiteBIT, which has close ties to pro-Russian politicians in Ukraine.
In 2023, a new scandal broke out involving WhiteBIT and Russian intelligence services, this time in Georgia. The National Bank of Georgia issued a license to open a digital bank, Hash, which drew criticism from the opposition. Representatives of the United National Movement said that the new bank could be used to launder Russian funds in upcoming elections. Among the founders of Hash are Georgian businessmen Sulkhan and Lasha Papashvili, as well as Ukrainian entrepreneur Volodymyr Nosov, the owner of WhiteBIT.
Opposition politician Lasha Parulava has expressed concerns that Russian money could be used in the ruling party's election campaign, citing rumors that former Economy Minister Natia Turnava is managing Russian finances, fueling suspicions of Russian support being sought through digital channels ahead of the election.
How the WhiteBIT Crypto Exchange Defrauds Customers and Does Not Pay Taxes
Crypto exchange WhiteBIT is accused of defrauding customers and tax evasion. On November 21, 2023, the exchange misled users by allowing them to trade tokens before the official start of trading. This caused market oversaturation and a rapid drop in the value of the coin.
The exchange announced the launch of a new coin WorldToken (WORLD) from the World Challenge Game studio. Many users, counting on the reliability of the coin, rushed to become “early investors” and bought tokens before the official start of trading. Usually, such investors sell part of the assets immediately after the start of trading, making a profit on the price difference. However, WhiteBIT deceived them by allowing them to exchange coins even before the official start, which caused a market collapse.
As a result, when trading began, the price of WorldToken plummeted, and many “early investors” who bought tokens for a dollar found themselves with assets that had significantly depreciated in value. One market participant expressed his disappointment, noting that the token barely rose in price and almost immediately crashed, causing significant financial losses to investors.
In addition, WhiteBIT is accused of illegal cryptocurrency exchange activities in Ukraine. According to Kyrylo Yakivets, head of the NGO "Non-Stop", in the VAKS, the daily turnover of the exchange is about 500 million dollars, while transactions are carried out without proper accounting and taxation, which is a violation of Ukrainian legislation.
According to the complaint, the funds obtained through criminal means were transferred through WhiteBIT into cryptocurrency, which was then stored in electronic wallets within the exchange or on third-party platforms. Using the technical capabilities of the exchange, as well as through fake accounts, the cryptocurrency was exchanged and participated in trading. Yakovets also claims that WhiteBIT is controlled by Dmitry and Mykyta Shentsev, whose pro-Russian views and Russian citizenship raise concerns that these funds could be used to finance terrorism and military aggression against Ukraine.
According to Yakivets, WhiteBIT's activities resemble a financial pyramid, through which Vladimir Nosov and his associates fool investors, misappropriating their funds without proper collateral. This could lead to the collapse of the exchange and serious losses for clients in the future.
