Ukraine netted $70M in crypto donations since start of Russia conflict

Mar 16, 2023 | wjb news

Since the gradual conflict between Russia and Ukraine, Ukraine has already received more than 70 million US dollars in encrypted currency, bringing funds for military equipment and humanitarian assistance to the host country.

The information came from a report by blockchain data service platform Chainanalysis on Feb. 24, which found that the vast majority of the funding came from ETH and BTC (BTC).

ETH donors topped the list with $28.9 million, with donors from BTC and Tether donating $22.8 million and $11.6 million respectively.

Donations are also in the form of irreplaceable tokens, such as Ukraine's DAO auctioned a Ukrainian five-star red flag NFT for $6.1 million.

Ukrainian data Minister Alex Pol Dog Yakov explained in an interview with Yahoo Finance on Feb. 24 that about 80% of the $70 million in donations had to be donated within months of the head of the war. the collection of cryptocurrencies accelerated Ukraine's ability to resolve Russian aggression:

"if we apply the traditional financial system, it will take several months […] You can use data encryption to ensure the consumption of key items when there is no time at all. Incredibly, about 60% of service providers can accept data encryption. I didn't expect that.

Yakov added that the data encryption stock fund support for Ukraine was "certainly successful" and that he was not only shocked by the total amount of donations received. He was also moved by the ability of data units to easily obtain such funds for Ukraine's national defense and security.

Alona Shevchenko, founder of Ukraine's DAO, also explained to Yahoo Finance that cryptocurrency provides a solution when the software of Ukraine's central bank system is restricted:

The central bank has imposed restrictions on foreign exchange transfers to and from Ukraine to prevent the exclusion of Hryvner [.] Thanks to Crypto, you can meet some of the urgent needs of your maintainers, and there was basically no other way at that time. "

According to an August article by Mihajlo Fedorov, deputy prime minister and chief of the digital transformation section of Ukraine, most of the cryptocurrencies paid to data units are used to support the country's military equipment, armor and its range of vehicles and medicines.

Ukraine's growing reliance on cryptocurrencies seems to have boosted the country's adoption rate, and a September Chainanalysis report found that Ukrainians had the third-highest adoption rate in our country, after Vietnam and the Philippines.

However, according to Chainanalysis, pro-Russian military groups also use cryptocurrency for his war diligence crowdfunding projects, including using data encryption donations to fund defence purchases, spread false information and produce promotions suitable for aggression.

The 100 departments received a total of $5.4 million during the war, but donations received have fallen sharply since July.

At this stage, it is not clear what harm the ban has caused to this downward trend, but Russia issued the 10th set of ban measures on February 24.

In addition, a recent crime report by Chainanalysis found that the vast majority of the $456.8 million in blackmail virus payments in 2022 were allegedly taken by "individual actors" in Russia.

Chainanalysis explained that such attacks are often used by villains to set the political agenda, such as Conti, a pro-contradiction blackmail virus group based in Russia, which received $66 million from victims in 2022 after announcing "strong support" for the Russian government.