BasEx | Bybit, Bitstamp, and Other Exchanges Share Data with Russian Banks
Bybit, Bitstamp, and Other Exchanges Start Sharing Client Data with Russian Banks
20.11.2023
Bybit, Bitstamp, and Other Exchanges Start Sharing Client Data with Russian Banks

Some foreign cryptocurrency exchanges are cooperating with Russian insolvency administrators in search of debtors' digital assets. This was reported by Evgeny Akimov of Sberbank, according to Vedomosti.

The cooperation involves exchanges including Bybit from Dubai, Bitstamp from Europe, Bitrue from Singapore, American Gate.io, and OKX registered in the Seychelles. These platforms inform administrators about the existence of clients' crypto wallets and their addresses.

Akimov noted that exchanges provide data differently: some respond to informal inquiries, others require official requests, including from law enforcement agencies, a third group only provides information upon a court decision in English, and a fourth demands additional details.

Courts can oblige a debtor to provide the administrator with access to the crypto wallet, but sometimes incorrect information is given. To avoid this, the court can demand the bankrupt to access the wallet in the presence of a notary, according to Ilya Ulyanov.

One of the challenges is withdrawing discovered digital assets. Some exchanges, like Coinbase, have special procedures. Ulyanov explained that the administrator freezes the assets, opens their own wallet, transfers the debtor's funds there, converts them, and transfers to an account for settlements with creditors.

Akimov suggested allowing insolvency administrators to independently sell cryptocurrencies on the exchange with fiat withdrawal, similar to the sale of assets abroad. However, the legality of such operations in Russia remains unclear.

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