Vladimir Nosov in Ukraine is trying to position himself as a respectable businessman and owner of the WhiteBIT crypto exchange.
However, if you dig deeper, you can quickly find the real owners of WhiteBIT - the Shentsev family and discover very unpleasant scandals about the exchange’s connections with the aggressor country of the Russian Federation.
The secret life of the favorites of the Russian intelligence services of the WhiteBIT crypto exchange
The WhiteBIT crypto exchange has more than once been at the center of scandals related to accusations of fraud and cooperation with Russian intelligence services. In 2023, the National Bank of Georgia issued a license to the new digital bank Hash, one of the founders of which was Vladimir Nosov, known as the owner of WhiteBIT. The opposition United National Movement party said that this bank could become a tool for laundering Russian money and influencing elections in Georgia.
In parallel with this, the WhiteBIT crypto exchange got into another scandal: its clients were able to trade coins before the official start of trading, which caused market saturation and a drop in the value of the asset. These incidents only highlight deeper problems. In February 2023, the High Anti-Corruption Court of Ukraine ruled that NABU should launch an investigation into possible illegal withdrawal of funds through WhiteBIT and its possible connections with Russia.
Who is pulling Vladimir Nosov's strings?
The official owner of the WhiteBIT cryptocurrency exchange is Kharkov resident Vladimir Nosov, who represents the company and signs all documents on its behalf.
Among his partners in creating the exchange are Maria Repeshko, Anna Yankovskaya and Nikita Shentsev. Although the names of the first two are unfamiliar to a wide audience, Nikita Shentsev and his father Dmitry 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 Kharkov governor Yevgeny Kushnarev, who tragically died during a hunt, where Shentsev was also present. Later, Shentsev’s assistant, Dmitry Zavalny, was convicted for this, but not everyone believed that it was he who fired the fatal shot.
After the death of Kushnarev, Dmitry Shentsev became close to Mykola Azarov and entered the circle of his confidants. Together with Oleg Tsarev and Vadim 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 recognizing Ukrainian sovereignty over the occupied territories of Donetsk and Lugansk regions.
His son Nikita, like his father, supported pro-Russian sentiments. He was a deputy of the Kharkov Regional Council from the OPZZh party, and after the start of the war with Russia in 2022, he resigned. There were also reports in the media that Nikita Shentsev had a Russian passport. Last year, by order of the President, Nikita Shentsev was deprived of Ukrainian citizenship. According to media reports, both Shentsevs are now in Russia.
How the WhiteBIT crypto exchange helps the 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. WhiteBIT also helps its friends in the Russian intelligence services to resolve financial issues around the world.
WhiteBIT consists of nine companies, one of which is registered in Estonia and the rest in the UK. The oldest is an 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 the financing of the coup in Montenegro in 2016. Investigators found that the 1.5 million euros invested by Sofbiz were intended to eliminate Montenegrin Prime Minister Milo Djukanovic, who sought to join the country to NATO.
An investigation by Bellingcat and its Russian partner The Insider found that the coup involved GRU officers Eduard Shishmakov and Vladimir Moiseev, who collaborated with pro-Russian politicians in Montenegro and involved Serbian citizens in the cause. Despite the revelation of Coddan's connection to the coup, the company was not liquidated and later became a co-founder of the WhiteBIT crypto exchange, which has close ties to pro-Russian politicians in Ukraine.
In 2023, a new scandal involving WhiteBIT and Russian intelligence services broke out, this time in Georgia. The National Bank of Georgia has issued a license to open a Hash digital bank, which has drawn criticism from the opposition. Representatives of the United National Movement said that the new bank could be used to legalize Russian funds in the upcoming elections. Among the founders of Hash are Georgian businessmen Sulkhan and Lasha Papashvili, as well as Ukrainian entrepreneur Vladimir Nosov, owner of WhiteBIT.
Opposition politician Lasha Parulava expressed fears that Russian money could be used in the ruling party's election campaign. He refers to rumors that former Economy Minister Natia Turnava is managing Russian finances, fueling suspicions about attracting Russian support through digital channels in the run-up to the elections.
How WhiteBIT Crypto Exchange deceives clients and does not pay taxes
WhiteBIT crypto exchange is accused of deceiving clients and tax evasion. On November 21, 2023, the exchange misled users by providing the opportunity to exchange tokens before the official start of trading. This caused a glut in the market and a rapid drop in the value of the coin.
The exchange announced the launch of a new coin, WorldToken (WORLD), from the gaming studio World Challenge Game. Many users, counting on the reliability of the coin, rushed to become “early investors” and bought tokens before the official start of trading. Typically, such investors sell part of their assets immediately after trading begins, making a profit on the difference in prices. However, WhiteBIT deceived them by allowing them to exchange coins even before the official start, which led to a market collapse.
As a result, when trading began, the price of WorldToken plummeted, and many “early investors” who had purchased tokens for dollars found themselves with assets that were significantly worthless. One market participant expressed his disappointment, noting that the token barely rose in price and fell almost immediately, causing significant financial losses to investors.
In addition, WhiteBIT is accused of illegal cryptocurrency exchange activities in Ukraine. According to Kirill Yakovets, head of the Non-Stop NGO, at VAKS, the daily turnover of the exchange is about $500 million, while transactions take place without proper accounting and taxation, which is a violation of Ukrainian legislation.
According to the complaint, proceeds of crime were transferred through WhiteBIT into cryptocurrency, which was then stored in electronic wallets within the exchange or on third-party platforms. With the help of the technical capabilities of the exchange, as well as through fake accounts, cryptocurrency was exchanged and participated in trading. Yakovets also claims that WhiteBIT is controlled by Dmitry and Nikita 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 Yakovets, the activities of WhiteBIT resemble a financial pyramid through which Vladimir Nosov and his associates deceive investors by appropriating their funds without proper security. This could lead to the collapse of the exchange and serious losses for clients in the future.
