The Ukrainian government has received approximately $70 million in crypto-currency donations since the invasion of the country by Russia one year ago, as per Chainalysis.
According to the blockchain data platform, the Ukrainian government successfully utilized cryptocurrencies. The government got cryptocurrency donations, particularly Bitcoin (BTC) and Ethereum (ETH), to avail support during times of war.
Despite being utilized for nefarious purposes during the war, cryptocurrency also has a positive impact on Ukraine. One such example is the significant amount of crypto donations that the Ukrainian government has received since the beginning of the war.
Ukraine received above $56 million in crypto donations as of March 2022 and has grown to almost $70 million as of February 2023. The data below shows that the majority of these donations include Bitcoin (BTC) and Ethereum (ETH), the most commonly used cryptocurrencies.
It has been one year since the start of the war, and approximately 100 pro-Russian organizations have received donations. Those organizations have received nearly $5.4 million. However, these donations have decreased over the past year.
Crypto-currency Ransomes
During the past few years, ransomware prevalence attacks have increased due to new technology vulnerabilities caused by remote jobs. According to Chainalysis 2023 Crypto Crime Report, ransomware payments in 2022 amounted to at least $456.8 million. The actors located in Russia have collected a significant portion of the funds.
Bad actors have frequently employed ransomware attacks to further their political objectives, observed in numerous instances during the Russia-Ukraine War. For example, Conti, a prolific ransomware group based in Russia, acquired around $66 million in ransom payments from victims in 2022.
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Worries arose that wealthy Russians may use cryptocurrencies to bypass sanctions and move money out of the country. An investigation into the liquidity of cryptocurrency markets prompted by stricter sanctions imposed on Russian businesses after the invasion.
The study results suggested that the cryptocurrency markets are likely too illiquid to facilitate a large-scale evasion of Russian sanctions. Yet, this does not rule out the possibility of smaller-scale activities.
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