Pro-Russian Military Group Raises $400,000 Cryptocurrency

With Russia facing international economic sanctions as a result of its invasion of Ukraine, cryptocurrencies have emerged as an attractive means of transacting and supporting programs such as fundraising.

Indeed, according to CNBC, blockchain startup TRM Labs‘ study, pro-Russian organizations are gathering funding in bitcoin to finance paramilitary activities and avoid US sanctions.

According to the firm’s CEO, Chris Janczewski, the group had raised at least $400,000 by September 22.

“As of last week, we identified about $400,000 that have been raised since the beginning of the invasion in February,” Janczewski said to CNBC.

TRM Labs determined the amount raised by reviewing a mix of publicly available wallet addresses and cross-checking websites for any Russian-linked entities. It has not been determined if the organizations are cooperating with the Russian government.

The groups are apparently using the messaging app Telegram to generate donations by sharing information about how supporters may help Russian-affiliated militia groups and combat training near the Ukrainian border. Some monies have been used to buy products like thermal imaging equipment and radios.

One associated group, Task Force Rusich, has been classified as a “neo-Nazi paramilitary group,” according to the US Treasury Department.

It is worth mentioning that Russia is subject to a slew of sanctions as a result of the Ukraine incursion. Sanctions are intended to isolate Russia from the global financial system.

Ari Redbord, head of legal and government affairs at TRM Labs, stated:

“I think an interesting part of this story is that a crypto is just a form of payment in these cases. It’s a way to move funds. And there’s an example of it being used for good and an example of it being used for bad in this context.” 

Last month, the OFAC sanctioned Task Force Rusich, two of its commanders, and five crypto addresses related to the group.

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