16.02.2025 Corruption Cybercrimes Money laundering

How do the head of the Intelligence Service and Minister of Digitalization Fedorov protect financial crimes?

Владимир Носов владелец криптобиржи WhiteBIT: Идеи, ставшие основой для создания биржи WhiteBIT, биография, состояние - Korrespondent.net

Cryptocurrencies have become not only a tool for investment and financial transactions for millions of users around the world, but also a new field for laundering billions by politicians, oligarchs, and business structures. However, is cryptocurrency always a safe way to invest and can highly touted crypto exchanges like WhiteBIT always guarantee the safety of assets?

How did WhiteBIT become a platform for international crimes and a key player in the case of the theft of $900 thousand?

On February 22, 2024, 841,000 USDT was stolen from the virtual asset exchange operator Four Dragons. Moreover, the criminals not only stole the funds but also managed to redistribute them through numerous cryptocurrency wallets and exchanges, which made it difficult to track the movement of assets.

Then the mechanism of “splitting” or “layering” came into play, which allows attackers to distribute large amounts through a number of intermediate wallets, increasing the anonymity of transactions and making it difficult to trace illegal amounts. Therefore, after the stolen USD 841,000 was transferred to a certain wallet, the amount was divided into smaller parts and transferred through other accounts specially created for this purpose. All this happened between several cryptocurrency exchanges, including WhiteBIT.

Interestingly, WhiteBIT, which positions itself as a platform capable of ensuring maximum security and compliance with European law, not only did not block suspicious transactions but also allowed the exchange of stolen assets to proceed unimpeded, despite receiving several warnings.

Moreover, 19 transactions of exchanging stolen funds for Bitcoin (BTC) and Ethereum (ETH) were processed through WhiteBIT, which gives reason to believe that the company was involved in the money laundering process.

WhiteBIT continued to work with other dubious platforms, such as the crypto exchange 001K.exchange, and even had tacit consent to the massive splitting of funds through its own wallet network.

So, is a crypto exchange that protects its reputation from scandals really so honest and transparent? And where is the compliance with anti-money laundering and counterterrorism financing legislation, which requires mandatory KYC identification?

In fact, WhiteBIT allows users to open accounts without complicated identity verification procedures, handle large amounts of money, and withdraw them without any clarification.

WhiteBIT’s response to the allegations and international isolation

After the law enforcement agencies of the Republic of Kyrgyzstan launched an investigation into the stolen Four Dragons funds, WhiteBIT representatives made a public statement assuring that all funds on the platform were frozen and suspicious wallet addresses were blocked. The crypto exchange also disclaimed responsibility, noting that it is not responsible for transactions taking place on third-party platforms.

The information from Hacken.io’s auditors was no less interesting. According to one of the company’s representatives, WhiteBIT’s real reserves were significantly lower than the officially declared ones. In addition, the audit did not confirm the declared daily turnover of $500 million, and publications on the official WhiteBIT website and the words of founder Nosov about billions of dollars in trading volumes looked like a manipulation aimed at attracting investors.

After the audit results were published, several large cryptocurrency platforms, such as CoinGecko and Gate.io, removed WhiteBIT from their trackers, which indicates serious problems within the crypto exchange. It also confirms that the companies’ partners no longer want to deal with a potentially fraudulent business.

In addition, after the WhiteBIT scandal, one of the officials of the Republic of Kyrgyzstan, Nurzhan Shaildabekova, resigned her position “of her own free will,” although analysts attribute this departure to her involvement in protecting the interests of the crypto exchange for financial reward.

In addition, according to published documents, Interpol has already put Nosov, one of WhiteBIT’s founders, on the international wanted list. So is everything really that good inside the crypto exchange?

I wonder what Nosov will say about this? Or will he simply continue to watch the developments in silence, knowing that the higher levels of government, such as Budanov’s GUR and Fedorov’s Ministry of Digital Transformation, will still protect him from liability in Ukraine?

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