Chainalysis, an American blockchain analysis company, released a detailed report about how more than $2 million worth of cryptocurrency donations were made. used to fund the Russian-wing of the war Ukraine
A few pro-Russian organizations were found to have bypassed sanctions placed on Russia by many organizations and used crypto donations to finance terrorism.
The conflict in Ukraine Exit It was about five months ago that forced the closing of many enterprises in both countries. It resulted in the disconnection of Russia and Ukraine from global activities. The parties affected were not spared either by the crypto ecosystem. Satoshi Labs (the manufacturer of the hardware wallet Trevor) has suspended distribution of its wallets to Russia and Ukraine.
The goal was to get Vladimir Putin, Russia’s current president, to end the war. BinanceThe world’s largest cryptocurrency exchange had to also limit its offerings for Russia due to the European Union sanctions.
Mastercard and Visa, two of Russia’s financial service providers, withdrew from Russia. This hampered Russia’s ability to meet its key monetary obligations. There were fears that Russia would still use the use of Crypto to evade all Sanctions. Chainalysis’s report suggests that our suspicions were correct.
Unidentified entities made crypto donations to 54 pro-Russian organizations. Pro-Russian militias were able to trace cryptocurrencies in the amount of $2.2 million back to them. A large portion of the crypto was stolen from Russia. Bitcoin (BTC) was worth more than $1.45million, followed by Ethereum (ETH), which was $590,000.
The donated funds were also made up of Litecoin and Tron-based USDT stablecoins Tether and Dogecoin (DOGE), among other cryptos. Chainalysis research shows that the Russians use cryptocurrency mixers to hide the source of the funds. Because there isn’t a clear pathway to the crime, authorities might not be in a position to arrest the perpetrators.
5 organizations have already received more $100,000, 17 received over $10,000, and the majority of the participating organizations received about $1,000 all in cryptocurrency.