Ukraine Received A Huge Donation Via Crypto Within One Year Of The War

Key Points:

• Ukraine has received over $70 million in cryptocurrencies since the Russian-Ukrainian crisis began.
• $28.9 million in Ethereum, $22.8 million in Bitcoin, and $11.6 million in Tether have been delivered to Ukraine since Russia’s invasion a year ago.
• More than $200 million worth of cryptocurrency has been moved to what is known as pro-Ukraine causes.

Cryptocurrencies have been exploited for nefarious purposes throughout the war, but they have also given Ukraine many reasons to feel empowered.

Geopolitical concerns and cryptocurrency’s influence on them don’t always make for happy reading. For instance, the US worries that digital assets may give those subject to sanctions a new way to avoid the banking system.

The employment of crypto in international politics is, however, far more subtle and complex, as the conflict in Ukraine has demonstrated.

Private cryptocurrency fundraising for pro-Ukrainian initiatives has surpassed Russian counterparts in the past year by a ratio of 44 to 1, according to data from blockchain data analytics company Elliptic.

Since the commencement of the Russian-Ukrainian conflict, Ukraine has received over $70 million in cryptocurrencies, allowing the country to pay for military hardware and humanitarian aid.

54 volunteer organizations made the commitment to promote misinformation, fundraise for Russian military purchases, and produce pro-invasion propaganda about five months into the conflict. Such groups had received around $2.2 million in donations at the time, some of which were made prior to the invasion.

At this point in the war’s first year, about 100 pro-Russian groups have received funds totaling close to $5.4 million. Throughout the course of the year, such donations have decreased.

The data was obtained from research released on February 24 by blockchain analytics company Chainalysis, which discovered that Ethereum and Bitcoin accounted for the majority of the funds.

Donors of ETH took the lead, contributing $28.9 million, followed by contributors of BTC and USDT, who contributed $22.8 million and $11.6 million, respectively.

Nonfungible Tokens (NFTs) have also been used as a kind of donation; one such NFT was sold at auction by UkraineDAO for $6.1 million.

According to the report, contributors contributed Bitcoin to Task Force Rusich, a Russian paramilitary group active in Ukraine that has been sanctioned, and Rusich then transferred the cash to a high-risk exchange.

Pro-Russian organizations received 87.3% of the funding, with 4.4% going to high-risk exchanges. With bigger percentages flowing to DeFi protocols and sanctioned exchanges, cybercriminal administrators connected to ransomware gangs and other bad operations operating over the same time period transmitted 30.3% of their cash to mainstream exchanges.

More than $200 million worth of cryptocurrency has been sent to what have been called pro-Ukraine causes. According to FT, these donations totaling more than $80 million, were delivered straight to the Ukrainian government.

Cryptocurrencies have offered a variety of positive benefits for Ukraine, boosting resilience during trying times and enticing international support for those affected by Russia’s invasion, despite the persistent donations to pro-Russia organizations, money laundering practices, and ransomware attacks.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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