• Elliptic conducted a report on the use of crypto assets and technology by both sides in the Ukraine-Russia conflict.
• The report found that more digital asset donations have gone to Ukraine than Russia, with $212 million worth of cryptocurrency donated to support Ukraine’s war efforts.
• Pro-Russian entities have raised around $4.8 million for the Russian military and associated militias, with 10% coming from illicit sources.
Analysis Unveils War Efforts Funded By Cryptocurrency
The two sides in the bitter conflict in Ukraine have been relying on crypto assets and technology to support their military and humanitarian activities, Elliptic says in a report. According to the blockchain forensics company, the targeted nation has attracted more digital asset donations than the invading power.
Donations To Support Ukraine
Both Russia and Ukraine have employed blockchain technology to secure funding for their war efforts since Russian forces attacked on Feb. 24, 2022, Elliptic revealed in a report exploring the evolving role of cryptocurrencies in the conflict. The study is based on data compiled by the crypto analytics firm over the past year. On the anniversary of the invasion, it was reported that „many campaigns have sought to harness core developments in the crypto ecosystem to aid their fundraising – from decentralized finance (defi) to crypto pre-paid cards.“
The digital cash was used for various purposes, from humanitarian causes to financing sanctioned groups. The analysis of transactions traced by Elliptic shows that over $212 million worth of cryptocurrency went towards supporting Ukraine’s efforts while anti-government organizations in Belarus received only around $0.7 million and pro-Russian groups raised approximately $4.8 million for its military activities and associated militias.
Illicit Sources Of Funding
More than 10% of these donations came from illicit sources according to Elliptic’s report which included darknet markets, sanctioned entities and stolen credit card vendors as well as less than 2% originating from such sources into funds allocated towards Ukrainian activities . Similarly , Pro-Russian entities collected around $400,000 between late February till late September as per TRM Labs data and Chainalysis reported that 54 such groups collectively received over $2.2 million worth of cryptocurrency since May 2022 .
Ukraine’s Digital Minister Claims Majority Of Military Suppliers Accept Crypto
Many fundraising initiatives on Ukrainian side utilized cryptocurrency where activists supporting Russia increased their funding since May 2022 raising more bitcoin & ether than Ukrainians . Furthermore ,Ukrainian Digital Minister claimed majority military suppliers accepted cryptocurrency payments further expanding reach & variety methods available via blockchain aiding country during times of crisis .
With rapid development & adoption new technologies ,cryptocurrencies are playing an increasingly important role when it comes support war efforts fuelling either side within ongoing conflict between Russia &Ukraine offering citizens & supporters platforms enabling them send funds directly without relying third parties