Ukraine Blocks Crypto Wallet Used to Raise Funds for Russian Forces – The Security Service of Ukraine has for the first time put in place a system to stop cryptocurrency fundraising for the troops taking part in the continuing conflicts on the side of Russia. When the Russian army entered Ukraine in late February as part of what Moscow refers to as a “special military operation” in support of the pro-Russian separatist regions of Luhansk and Donetsk, the conflict erupted into a full-scale war.
The Security Service of Ukraine (SBU) said in a press release on Tuesday that a cryptocurrency wallet used to fund Russia’s military operation in Ukraine and run by a Russian citizen had been shut down. Since the beginning of the invasion, the individual, who claimed to be a volunteer, has been raising money for the needs of the Russian forces.
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By the time it was blocked, the wallet contained digital coins worth 800,000 hryvnia (about $22,000 at today’s exchange rates), according to the SBU, which also stated that the money has now been seized. The associated transactions are currently being tracked by experts, and custody is being transferred to Ukraine. The agency did not say how it took possession of the wallet, but it did say that foreign cryptocurrency firms helped.
Investigators in Ukraine have been able to prove that the owner of the wallet used a sizable percentage of the donated cryptocurrency to buy weapons for the separatist militants of the self-declared Luhansk and Donetsk People’s Republics. The operation also included participation from the Prosecutor General’s Office and members of the Ukrainian National Police.
Since the start of the most recent round of hostilities, the Russian activist has been actively requesting financial support on social media channels. Without disclosing the identity of the Russian, the SBU described how the man had been creating and routinely posting video and photo content, sharing posts written by associates, and reporting on how the money had been used.
In a report released last month, the blockchain forensics company Chainalysis revealed that 54 pro-Russian groups had collected more than $2.2 million in cryptocurrencies altogether. These Donetsk and Luhansk-based groups received the majority of the donations in bitcoin (BTC) and ether (ETH), but also in other cryptocurrencies.
The government in Kyiv and volunteer organizations have both relied on cryptocurrency donations to support defense efforts in Ukraine. Mykhailo Fedorov, the minister of Ukraine’s digital transformation, recently announced on Twitter that the $54 million in cryptocurrency funds raised through the Aid For Ukraine program had been used to buy body armor, medications, night vision equipment, and even vehicles for the Ukrainian army.
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Ukraine Blocks Crypto Wallet Used to Raise Funds for Russian Forces – The crypto community and industry have also provided solely humanitarian relief to the Ukrainian people. The largest cryptocurrency exchange in the world, Binance, provided a special crypto card for Ukrainians forced to flee their homes, and the European cryptocurrency exchange Whitebit, which has Ukrainian roots, promised to support Ukrainian refugees through its representative offices abroad.
