Crypto’s Unexpected Utility in Ukraine
A year after Russia’s invasion of Ukraine, cryptocurrency has emerged as a surprising player in the conflict. While often feared as a tool for evading sanctions, crypto has shown a more complex role. Blockchain analytics firm Elliptic reports that private crypto donations to pro-Ukraine causes have outpaced those to pro-Russian entities by 44 to 1.
Over $200 million in crypto has been funneled to pro-Ukraine efforts, with $80 million directly supporting the Ukrainian government. These funds have provided military essentials like bulletproof vests and communication devices, and supported humanitarian aid, journalism, and intelligence.
In contrast, pro-Russian entities have received less than $5 million in crypto, primarily for military fundraising. These donations often originate from exchanges and mixing services, drawing the ire of Western governments. Despite the disparity, Russian crypto fundraising has remained steady, even as Ukrainian donations have slowed since March 2022.
The Dark Side of Crypto
Elliptic’s research also reveals more sinister uses of crypto, such as its role in funding the Rusich paramilitary group, known for neo-Nazi ties and brutality in Syria and Ukraine. Rusich has used crypto donations to fund their operations and has even attempted to extort grieving families by offering burial site coordinates in exchange for bitcoin.
So, is crypto really a force for good, or does it just depend on who’s holding the keys?
Source : https://www.ft.com/content/a3b59f3b-d0b3-4047-af71-c8ef61aa8d58 Show Less
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