The ongoing conflict between Russia and Ukraine has seen both sides utilizing cryptocurrencies in a bid to gain an edge in the war.
Pro-Ukraine groups have managed to raise approximately $200 million through crypto donations, highlighting the significance of borderless and censorship-resistant money during times of crisis.
On the other hand, pro-Kremlin organizations and propaganda channels associated with the Russian side have also embraced crypto fundraising, amassing around $5 million as the invasion unfolds, as detailed in a recent report by Chainalysis. These grassroots entities are employing crypto as a workaround to circumvent financial restrictions imposed by Western nations.
Andrew Fierman, Head of Sanctions Strategy at Chainalysis and a report co-author, highlighted the individuals involved in these efforts, noting that they are often individuals on the frontlines seeking to bolster military resources such as bulletproof vests and drones.
However, the fundraising figures do not encapsulate the realm of ransomware attacks, where Chainalysis data discloses that over $450 million had been paid out in 2022, with the majority presumed to originate from entities in Russia. Some groups, including the cybercriminal outfit Conti, have openly aligned themselves with the Russian government’s war objectives.
Fierman emphasized that ransomware payments frequently harbor political motivations behind the nefarious actions of these bad actors.
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