For the first time, the Security Service of Ukraine (SBU) has implemented a mechanism to prevent cryptocurrency fundraising for the Russian soldiers taking part in the national conflict.
Full-scale war broke out when the Russian army invaded Ukraine in February as part of what Moscow calls a “special military operation” to help the pro-Russian breakaway regions of Luhansk and Donetsk.
In a press release on Tuesday, the SBU stated that a cryptocurrency wallet run by a Russian citizen and used to fund Russia’s military campaign in Ukraine had been shut down.
Since the beginning of the invasion, the volunteer has been collecting funds for the Russian military.
According to the SBU, the wallet contained cryptocurrencies worth 800,000 hryvnia (about $22,000) by the time it was blocked. The agency did not specify how it obtained the wallet, but it did state that it was assisted by overseas cryptocurrency firms. Experts are currently tracking the associated transactions, and custody is being transferred to Ukraine.
Investigators in Ukraine have established that the wallet owner used a significant portion of the donated cryptocurrency to purchase weapons for the self-proclaimed Luhansk and Donetsk People’s Republics.
The operation also included personnel from the Prosecutor General’s Office and the Ukrainian National Police.
Since the outbreak of the most recent round of hostilities, the Russian activist has actively sought financial assistance via social media channels.
Without revealing the Russian’s identity, the SBU described how the man was creating and routinely publishing photos and videos, sharing posts written by friends, and reporting on how the money was spent.
In a report released last month, Chainalysis, a blockchain forensics company, revealed that 54 pro-Russian entities had already collected more than $2.2 million in cryptocurrencies. Most of the funds donated to these Donetsk and Luhansk-based organizations were in the form of bitcoin (BTC) and ether (ETH), but other cryptocurrencies were also used.
Both the government in Kyiv and volunteer organizations have relied on cryptocurrency donations to support Ukraine’s defence efforts. Mykhailo Fedorov, Ukraine’s minister of digital transformation, recently shared on Twitter that the $54 million raised in cryptocurrency through the Aid For Ukraine program was used to purchase body armour, medicine, night vision equipment, and even vehicles for the Ukrainian army.
The crypto community and industry have provided 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. Whitebit, a European cryptocurrency exchange with Ukrainian roots, promised to support Ukrainian refugees through its representative offices overseas.
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