Prosecutors probe WhiteBIT links to Four Dragons funds and Russian market

Case registration under Art. 364(2) of the Criminal Code

The Shevchenkivska District Prosecutor's Office in Kharkiv entered information into the Unified Register of Pre-trial Investigations under procedural number 42026222060000090. The action is qualified as abuse of power or official position, as stipulated by Part 2 of Article 364 of the Criminal Code of Ukraine.

Movement of $841,000

The key episode of the case is the withdrawal of $841,000 from the wallet of Four Dragons LLC. On 22 February 2024, the assets were moved through a network of intermediate cryptocurrency addresses. Part of the funds was subsequently directed to various exchange platforms and services, including WhiteBIT. Within this chain of transactions, 19 operations exchanging USDT for BTC and ETH were recorded.

Risks of transit wallets

Particular attention is paid to the use of numerous transit wallets, through which funds were sequentially split and transferred between addresses. According to the AML analysis presented in the statement, the risk indicators for individual addresses ranged from 40% to 100%.

Investigation of links with BTC-e and the Russian market

Another line of investigation concerns the links between WhiteBIT's cryptocurrency infrastructure and funds associated with the Russian market. The issue of moving assets linked to the BTC-e exchange has been raised, as well as the possible use of related legal entities in various jurisdictions to conduct the relevant operations.

In total, the case involves the movement of funds from the Four Dragons LLC wallet through a network of 35 cryptocurrency addresses, their splitting, conversion into BTC and ETH, as well as transactions linked to WhiteBIT. A separate block of materials concerns the possible movement of funds associated with BTC-e and the Russian cryptocurrency market. These circumstances require verification within the pre-trial investigation; the registration of the case itself is not proof of the guilt of any individuals.