Last Updated on 19 mins by cryptoevent

Ukraine has received millions of dollars in cryptocurrency donations to support its military efforts amid the Russian invasion. However, a new report shows that Russia is accepting crypto donations to fund its military.

Russia has received crypto donations

A report published by chain analysis on July 29 shows that several groups supporting Russia have raised over $2 million in crypto donations, mostly in bitcoin and ether, to support the ongoing war in Ukraine.

The report showed that 54 pro-Russian organizations had received around $2.2 million worth of crypto donations in Bitcoin, Ether, Tether (SUDT), Litecoin and Dogecoin. The funds will support paramilitary groups in the Donbass region of Ukraine in accessing equipment and logistics. The Donbass region is under OFAC sanctions.

Chainalysis also said that the cryptocurrency donations going to the pro-Russian groups will be used to purchase weapons, drones, military equipment, communications equipment and other tools needed by the military.

Chainalysis is a blockchain intelligence company. It explained that the paramilitary groups used social media to find ways to use these donations to purchase weapons. The report even cites a statement from a social media account of the pro-Russian group requesting funds to buy a drone.

The alleged social media post said the group needed 150,000 rubles to buy and use a drone in the war. Some groups have publicly displayed the medical equipment they have purchased, including medical bags and first-aid kits, with the Chainalysis report adding that despite the small amount donated, this may affect the militias’ combat position.

Concerns about using crypto to avoid sanctions

At the beginning of the war, Western countries imposed sanctions on Russia to urge it to withdraw its troops from Ukraine. As Russia became the most sanctioned country in the world, many citizens rushed to buy Bitcoin and protect their wealth from a falling ruble.

Chainalysis said the paramilitary groups receiving these donations use cryptocurrencies to circumvent international sanctions. More than 11% of cryptocurrencies received went through coin mixers to disable tracking.

The Chainalysis report added that the pro-Russian groups laundered around $1 million through cryptocurrency exchange Bitzlato. The chain analysis also suggested that these donations were a sign that these groups were working to achieve their goals. However, the crypto donations received from Russia are small compared to the over $100 million donated to Ukraine.

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Post-Chainalysis report reveals that Russia has received over $2 million in crypto donations, which first appeared on the Business 2 community.

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