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A year after invading Ukraine, Russian military fundraising groups have raised millions of dollars in cryptocurrency despite sanctions imposed by the US and other countries.
While it appears Russian military procurement and disinformation groups have raised about $4.2 million, a comparatively low figure from Ukraine’s $212 million, research from blockchain analytics firm Elliptic showed. discovered that the country has raised up to $20 million in cryptocurrencies.
Russian military groups raise $20M in crypto
Elliptic made the discovery after NATO allies identified and sanctioned new Russian financiers. A deeper analysis revealed that half of the donated funds came through US-sanctioned entities.
More than 80% of funds from sanctioned pro-Russian entities were found in centralized crypto exchanges, indicating they were the most common destination for the assets. In addition to centralized platforms, institutions are also engaging with decentralized finance (DeFi) protocols, including cross-chain bridges, non-fungible token (NFT) services, and decentralized exchanges (DEXs).
Approved entities include individuals and groups that have adopted crypto for a variety of reasons. Some view the digital asset as a source of fundraising, and others as an incentive. For example, Alexander Zhuchkovsky, a US-sanctioned personality, heavily promoted the Terrikon NFT project with the aim of raising money for the Russian war effort. However, NFT marketplace OpenSea delisted the collection before any funds could be raised.
On the other hand, senior officials in the Donetsk People’s Republic revealed that they trade intelligence about Ukrainian military posts with Bitcoin (BTC). The US-sanctioned Task Force Rusich has also suggested that its supporters bury dead Ukrainian soldiers and demand BTC from their families in exchange for information on the location of their bodies.
Risk of increasing sanctions
While global sanctions regimes have sharpened their positions against pro-Russian individuals and entities raising funds to acquire military equipment, humanitarian groups are believed to have issued crypto donation wallets that expose approved individuals at risk. Are.
An example is the Russian Humanitarian Mission (ROM), which solicits crypto donations through the wallet of Russian fighter Evgeny Poddubny, which has been approved by the United Kingdom, Canada, Australia, and Ukraine. Elliptic found that Poddubny received funds from sanctioned and criminal platforms such as darknet markets Hydra and Shakaf, the Garantex exchange and the Bitzlato exchange.
The movement of money underlines the growing sanctions risk for crypto services and the need for effective compliance regimes in the emerging sector.
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A year after invading Ukraine, Russian military fundraising groups have raised millions of dollars in cryptocurrency despite sanctions imposed by the US and other countries.
While it appears Russian military procurement and disinformation groups have raised about $4.2 million, a comparatively low figure from Ukraine’s $212 million, research from blockchain analytics firm Elliptic showed. discovered that the country has raised up to $20 million in cryptocurrencies.
Russian military groups raise $20M in crypto
Elliptic made the discovery after NATO allies identified and sanctioned new Russian financiers. A deeper analysis revealed that half of the donated funds came through US-sanctioned entities.
More than 80% of funds from sanctioned pro-Russian entities were found in centralized crypto exchanges, indicating they were the most common destination for the assets. In addition to centralized platforms, institutions are also engaging with decentralized finance (DeFi) protocols, including cross-chain bridges, non-fungible token (NFT) services, and decentralized exchanges (DEXs).
Approved entities include individuals and groups that have adopted crypto for a variety of reasons. Some view the digital asset as a source of fundraising, and others as an incentive. For example, Alexander Zhuchkovsky, a US-sanctioned personality, heavily promoted the Terrikon NFT project with the aim of raising money for the Russian war effort. However, NFT marketplace OpenSea delisted the collection before any funds could be raised.
On the other hand, senior officials in the Donetsk People’s Republic revealed that they trade intelligence about Ukrainian military posts with Bitcoin (BTC). The US-sanctioned Task Force Rusich has also suggested that its supporters bury dead Ukrainian soldiers and demand BTC from their families in exchange for information on the location of their bodies.
Risk of increasing sanctions
While global sanctions regimes have sharpened their positions against pro-Russian individuals and entities raising funds to acquire military equipment, humanitarian groups are believed to have issued crypto donation wallets that expose approved individuals at risk. Are.
An example is the Russian Humanitarian Mission (ROM), which solicits crypto donations through the wallet of Russian fighter Evgeny Poddubny, which has been approved by the United Kingdom, Canada, Australia, and Ukraine. Elliptic found that Poddubny received funds from sanctioned and criminal platforms such as darknet markets Hydra and Shakaf, the Garantex exchange and the Bitzlato exchange.
The movement of money underlines the growing sanctions risk for crypto services and the need for effective compliance regimes in the emerging sector.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
