WhiteBit exchange and Volodymir Nosov exposed: from heroes to zeroes

WhiteBit crypto exchange seemed to have appeared out of nowhere and quickly gained popularity worldwide. With bold and often exaggerated claims, the company has spent fortunes on PR and advertising. WhiteBit sponsors sports teams, charities, and funds, and behaves as if money is printed out of thin air.

Despite the absence of software engineering or cryptographic background of Vladimir (aka Volodymir) Nosov, CEO of Whitebit, the company has gained credibility due to an extensive PR and giveaways. However, some have raised doubts about the business’s origins in Ukraine and its possible ties to illegal activities. According to Epravda, a Ukrainian media outlet, WhiteBit has links to some highly suspicious beneficiaries. Here are some of the findings of Vladimir Fomichev, a columnist for Epravda.

WhiteBit exposed

Ukrainian journalist is accusing the Estonia-registered cryptocurrency exchange WhiteBIT of collaborating with Russian law enforcement agencies and of having a pro-Russian attitude towards one of its co-owners.

WhiteBit donated huge sums to the Armed Forces of Ukraine and humanitarian aid, but according to Vladimir Fomichev, journalist for the Epravda, it’s only an expensive cover up.

In 2022, Vladimir Nosov, an EU e-resident and co-owner of WhiteBIT, purchased the Eurovision 2022 winner’s prize of Kalush Orchestra for $900,000 at a charity auction to donate the money to Ukraine. However, a columnist for the Ukrainian publication epravda.com.ua, Vladimir Fomichev, accuses the cryptocurrency exchange of having a pro-Russian attitude and assisting Kremlin agencies.

According to Fomichev, there are nine companies in the WhiteBIT structure, with one registered in Estonia, and the rest in the United Kingdom. One of these companies has links to Sofbiz, which is accused of financing an attempted coup in Montenegro in 2016.

“British WhiteBIT Solutions LLP has two offshore beneficiaries – Whitebit LTD and Coddan Nominee. Both companies have the same legal address in Seychelles,” writes Fomichev. “Coddan Nominee is part of a sprawling offshore network and is among the founders of Sofbiz.” — Fomichev states.

Coddan Nominee Administrator LTD is an offshore company from Seychelles.

Whitebit Solutions LLP is a Limited Liability Partnership from London and has the active status. It was incorporated 3 years ago on 31/01/2020 and has the registered number: OC430512. The accounts status is dormant.

Sofbiz is the Czech company that transferred 1.5 million euros to the organizers of the failed coup in Montenegro in October 2016, as reported by Radio Free Europe/Radio Liberty. According to Montenegrin investigators, this money was supposed to be used to pay for the assassination of then-prime minister and current president of the country, Milo Djukanovic. The investigation by the Bellingcat and The Insider groups proved that officers from the GRU of the Russian General Staff were involved in the coup in Montenegro.

The WhiteBIT crypto exchange was founded by Vladimir Nosov in 2018. According to the company itself, the exchange serves more than 3 million users in 150 countries. More than 400 trading pairs are available on WhiteBIT.

In Estonia, it is registered as R&D sprint effective OÜ since 2019. In addition to Nosov, who owns 75%, it is owned by Maria Repeshko, Anna Yankovskaya, Nikita Shentsev, Alexey Kovalev, and Gleb Ushakov (data from the company’s 2021 report).

Who are Dmitry and Nikita Shentsevs?

Nikita Shentsev, as well as his father Dmitry, were deputies of the Kharkiv Regional Council from the pro-Russian party “Opposition Platform – For Life”. In 2022, the National Security and Defense Council of Ukraine suspended the party’s activities, and a court decision banned it.

“Their statements and messages on social networks testify that at least Nikita and Dmitry Shentsev do not condemn the war of Russia against Ukraine and, most likely, support the actions of the hostile state,” the text by Fomichev says.

WhiteBIT, BTC-e and Alexander Vinnik connection

In addition, the WhiteBIT exchange is credited with assisting in the withdrawal of funds from the Russian crypto exchange BTC-e. This exchange is linked to Russian billionaire Konstantin Malofeev, chairman of the board of directors of the “Tsargrad” TV channel, who financed the war in Eastern Ukraine. The founder of BTC-e, Russian citizen Alexander Vinnik, was extradited to the United States in the summer of 2022 for financial manipulations and money laundering of $4 billion.

Finance of the exchange remained inactive for a long time, but in March 2023, their unusual movement began: IT journalists noticed that they were being broken down into small sums and withdrawn through various services. Experts of the Russian crypto market noted that out of almost 86 million dollars, about 12 million was withdrawn to the WhiteBIT exchange. This proves that this supposedly Ukrainian exchange has close ties with the Russian Federation and supports with dirty money a person who faces life imprisonment in the United States,” writes a columnist for epravda.com.ua.