Ukraine is using Bitcoin to “finance” the war with Russia.

According to a report Recently by blockchain analysis firm Elliptic, as tensions on the Ukrainian border continue to escalate, Ukrainian non-governmental organizations (NGOs) are seeing a sharp surge in Bitcoin donations.

These are not anti-poverty or social justice charities. We’re talking about hacktivists (activism, which is the use of computer-assisted techniques like hacking as a form of civil disobedience to advance a political agenda or social change) in favor of Ukraine and military organizations.

Elliptical said it is synonymous with NGOs and other groups using cryptocurrencies for “crowdfunding”.

Russian soldiers move towards Ukrainian border | Photo: Vox

Russia has deployed 100,000 to 130,000 troops on its borders with Ukraine and Belarus as a threat to a possible attack.

The United States, an ally of Ukraine, has deployed 3,000 troops to the area, with another 8,500 on high alert.

“New Elliptic Research reveals how Ukraine’s war is being financed with crypto. Cryptocurrency funds are used to equip Ukraine’s military and fund cyberattacks against Russia. Cryptocurrency donations to these groups have increased by more than 900% through 2021.”

According to the report, in response to government corruption over the past decade, local NGOs have begun providing soldiers with direct financial assistance, including weapons and medical supplies. Elliptic says donors use Bitcoin to send funds to such NGOs, bypassing any banks and financial institutions that might block the payments.

“Elliptic has identified a number of crypto wallets used by these volunteer groups and NGOs that have collectively raised more than $570,000 — most of them in the past year.”

Some of the groups Elliptic says are accepting Bitcoin donations are Come Back Alive, which provides training, military and medical equipment, and Myrotvorets Center, which has ties to the Ukrainian government.

Others include the hacktivist groups Ukraine Cyber​​Alliance and Belarusian Cyber-Partisans, which have been involved in cyberattacks against Russian targets. Elliptic says that in the last year alone, the Ukrainian Cyber ​​Alliance received nearly $100,000 in bitcoin, litecoin, ethereum and stablecoins.

This idea does not come from Ukraine, but from pro-Russian groups that started Bitcoin fundraising in early 2014.

However, cryptocurrencies make up only a small fraction of the capital flowing into Ukraine. Most funds are in fiat currency through traditional payment systems backed by Western allies.

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