The Ukrainian cryptocurrency exchange Whitebit, which regularly conducts PR campaigns in the country, was actually created to legalize and launder funds by deputies from pro-Russian parties that are banned in Ukraine. The main sponsors and co-founders of the Whitebit exchange are MPs Dmitry and Nikita Shentsev, writes Bagnet.
Together they hold a share of 60% of the business and use the company for their own enrichment and withdrawal of funds from illegal businesses abroad. Such information was recently published by the human rights organization NGO “NON-STOP“.
Whitebit and money laundering – the reason for the publicity
The NON-STOP human rights organization, which often investigates the illegal activities of deputies and officials, published its own investigation about the Whitebit exchange. According to experts, the CEO of the exchange, Vladimir Nosov, is only a nominal public figure, and the real owners of the exchange are pro-Russian deputies Dmitry Shentsev and his son Nikita Shentsev. They allocated funds for the creation and aggressive PR of the exchange to satisfy their own business interests, legalize illegally acquired funds and evade taxes.
Investigation of a money laundering scheme through Whitebit. Source – NGO “NON-STOP”
What is known about the founding and sponsors of Whitebit
Dmitry Shentsev – was elected a People’s Deputy of Ukraine from the “Party of Regions” and later from the “Opposition Bloc”. One of 36 deputies who voted in 2018 against the Law on the recognition of Ukrainian sovereignty over the occupied territories of Donetsk and Luhansk regions. From February 24 to June 2022, he missed all meetings of the Verkhovna Rada. In September 2022, the Verkhovna Rada supported his early termination of his powers as a People’s Deputy of Ukraine. As stated in Wikipedia, in 2013 Dmitry Shentsev received a medal by decree of the President of the Russian Federation “for his great contribution to the preservation and promotion of the Russian language and culture abroad.”
Nikita Shentsev is the key sponsor and the actual owner of the exchange according to NGO NON-STOP. Deprived of citizenship of Ukraine by order of the President in 2023. Resigned as a deputy.
Nikita Shentsev is the son of Dmitry Shentsev, a deputy of the Kharkiv Regional Council from the “opposition platform – for life.” In 2022, he wrote a letter of resignation of his own free will. He was presented in the lists to the President of Ukraine for deprivation of citizenship. Earlier, information appeared in the media that Nikita had a Russian passport. Deprived of citizenship by decision of the President in 2023.
As the human rights organization notes, Dmitry and Nikita Shentsev built a business empire in the territory of Kyiv and Kharkiv regions: development of budgetary funds, privatization of forests, control of regional financial flows, construction, sports, monopolization of natural resources in the regions, as well as cryptocurrency.
It was Nikita Shentsev who became one of the main founders and sponsors of the Whitebit exchange
Vladimir Nosov, Nikita Shentsev and advertising campaign
Vladimir Nosov — Exchange CEO
Vladimir Nosov is the public face of the Whitebit cryptocurrency company. It was Vladimir who became the main headliner of the project and positions himself everywhere as the founder of the exchange. Recently, the personality of Vladimir Nosov has become very popular in Ukrainian publications: interviews for Forbes, RBC and other popular publications in the country. Whitebit announced cooperation with DIA, the CEO holds online conferences with key media personalities of the country, gives interviews about the prospects for the development of cryptocurrency in Ukraine. The Whitebit exchange even publicly condemned the work on the territory of the Russian Federation of its competitor, the Binance exchange. So the Whitebit team has enough finances for a powerful advertising campaign in Ukraine. And with the start of a full-scale invasion of the Russian Federation, Whitebit is popularized in the media space with an emphasis on citizenship.
However, the information published in the media and social networks of human rights organizations runs counter to the way that Vladimir Nosov is trying to create for the crypto exchange: the main founders and sponsors of Whitebit are pro-Russian deputies who have been cooperating with the Russian Federation for a long time, and with the beginning of the invasion, they stopped their deputy activities and left country.
According to the results of the NON-STOP investigation, the Whitebit exchange was created by Nikita Shentsev in order to evade taxes and legalize funds from an illegal, shady business empire created over the years of activity in pro-Russian parties. Dmitry and Nikita Shentsev became the main sponsors of Vladimir Nosov and own the majority of the corporate rights of the exchange with a 60% share. That is, Vladimir Nosov, a popular figure in the country’s blockchain market, is the founder of Whitebit only nominally. The real owners and organizers of the crypto project are former pro-Russian deputies with Russian citizenship.
The withdrawal of funds through the stock exchange, former deputies and their colleagues from the opposition camp, are used to purchase real estate abroad, luxury cars and business development. Own crypto-exchange is used as a tool to ensure financial flows from Ukraine abroad. And this happens during the war.
Despite the active advertising of Whitebit in the media space, the regular appearance of positive reviews and reviews, their own show “Gagarin show”, created to promote the team and the company, no official reaction to the accusation has yet appeared.
Where is the PR, and where is the truth – what will happen to Whitebit?
Human rights activists have already applied to the relevant regulatory authorities to obtain a legal assessment regarding Whitebit:
- Security Services of Ukraine
- Bureau of Economic Security of Ukraine
- Office of the Attorney General
- Ministry of Finance of Ukraine
- Cabinet of Ministers of Ukraine
- Special Anti-Corruption Prosecutor’s Office.
A group of activists proposes to start an investigation by examining the financial flows of the Shentsev group and their involvement in money laundering through the Whitebit exchange. It is also proposed to find out the key individuals and legal entities that became the main investors of Whitebit and rented an office in the elite center “Diamond City”, as well as to check the main beneficiaries. Such an investigation will help establish Whitebit’s involvement in money laundering and determine whether the funds of Ukrainians who registered on Whitebit were used to satisfy the own shadow interests of key sponsors.
Regarding Whitebit, accusations have already appeared about the insecurity of investor funds. However, thanks to a media campaign, Whitebit managed to stop the publicity. Note that recently new materials have appeared on the network, accusing the Whitebit exchange in opacity, asset lockup, and user exposure. An investigation by the regulatory authorities would make it possible to understand the status, origin and safety of the Whitebit exchange for the country and citizens.
Therefore, if the allegations are confirmed, will it turn out that the Whitebit exchange, hiding behind a pro-Ukrainian image, is in fact a product of Russian interest in Ukraine?