According to Elliptic, an analytics firm, pro-Ukrainian accounts by governments or humanitarian organizations raised 44 times more money than Russian fundraising campaigns.
In the second year of Russia’s large-scale invasion of Ukraine, the winner of the crypto war between the two countries is determined. And not RF. According to the research, over the past year, revenues to pro-Russian blockchain wallets have increased by $5 million and to pro-Ukrainian wallets by more than $212 million. Reported by Newsweek.
Pro-Ukrainian accounts – whether official government organizations or humanitarian groups – raised 44 times more money than pro-Russian fundraising campaigns, including for the Russian military.
A report by blockchain analytics firm Elliptic reveals that more than 10% of crypto assets taken by pro-Russian wallets are the result of illegal activities stemming from the dark web or illegal currency trading. Less than 2% of transfers to pro-Ukrainian accounts are related to illegal activities.
Cryptocurrency in the Russian Federation was initially seen as a way to avoid sanctions. According to Castellum.AI, Russia has become the country with the most restrictions. The total number of sanctions imposed on the Russian Federation or on Russian companies before the large-scale invasion of Ukraine is 2,695, and after February 2022 – already 11,458.
Elliptical analysts noted that in addition to 10% of illegal transfers, a third of funds falling into Russian wallets go through the so-called “crypto mixer”. This is a service that mixes different cryptocurrency streams to make it harder to trace their origins.
Another study by Chainalysis showed that the peak of cryptocurrency revenues in the Russian Federation was observed in June 2022, confirming Elliptic’s findings.
The head of the sanctions department of Chainalysis, a company that works with governments, said that the cryptocurrency does not go directly to the wallets of the Russian government, but is used to finance Russian troops.
“For these funds, they do not buy tanks, but bulletproof vests or winter gloves for the army at the front,” he explained.
The Elliptic analyst also described how the average pro-Russian Telegram channel collects donations using a “shopping list” that can list drones, radars, weapons, other gear, and even clothing and food.
Most transfers to pro-Russian wallets were observed in mid-2022 and to pro-Ukrainian wallets at the beginning of the invasion. About $60 million was received in cryptocurrency in the first weeks, and about $30 million came in in the first four days.
Previously Focus reported that the cryptocurrency is at the forefront of the fight against Russia. Analysts from Elliptic Intel conducted an analysis of how Ukrainian organizations and volunteer groups use cryptocurrency.
Recall that the Waves cryptocurrency, developed by a Ukrainian, doubled in price during the war. Within two weeks, the price of the coin rose from $9 to $26.
Source: Focus
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.