Russia Received Over $2M in Crypto Donations Amid War With Ukraine: Report
- Following the war between Russia and Ukraine, crypto has proven to be a hedge against war-induced financial instability.
Russia has reportedly received more than 2 million donations in cryptocurrencies as its war against Ukraine continues to persist. According to Chainalysis, dozens of Pro-Russian Groups are funding the war via cryptocurrency donations, especially BTC and ETH.
Russia to Fund War With Crypto Donations
Several months have passed since the news about Russia’s invasion of Ukraine began to buzz the air. The tension saw the countries struggling with financial instability, making cryptocurrencies a better tool for funding amid the war.
Although reports revealed several institutions setting out to fund the invaded country Ukraine to help them survive the Russian-induced tension. However, a new report from Chainalysis has demonstrated a “what’s sauce for the goose is sauce for the gander ” situation between Russia and Ukraine. Hence, the invaded country may have been receiving millions of dollars in crypto donations, nonetheless, attackers in Russia are also receiving crypto donations.
According to the report, the crowdfunding received by the pro-Russia groups is aimed at acquiring weaponry, drones, bulletproof vests, communication devices, and other military supplies needed for the ongoing crisis. The groups have taken to social media to disclose the intentions behind the donations.
“We have only 150 thousand rubles left to raise for a drone that will be able to deliver “gifts” to the positions of our Ukrainian “friends.” We hope to be able to film it on video and delight you with interesting shots,” a social media post from one of the group reads.
Per the report, Russia is hell-bent on improving its effectiveness during the war by providing as many military amenities as needed despite not having received enough money. The report further suggests that the increase in pro-Russian groups receiving donations via cryptocurrencies may be attributed to the group’s efforts to relentlessly coordinate their actions to achieve their purposes.
Crypto as Hedge War Induced Economic Woes
Following the war between Russia and Ukraine, crypto has proven to be a hedge against war-induced financial instability. Since the emergence of the attack, cryptocurrencies have been the most adopted financial tool used to control the effect of the crisis on the economic situation of the countries.
The report noted that Russia has adopted the use of cryptocurrencies for the specified purpose as its local currency, Ruble has lost its value over the months. The country acknowledges cryptocurrencies as a hedge against inflation and the devaluation of weak fiat currencies.
Prior to the recent report, Ukraine recorded hundreds of thousands in crypto donations as firms and individuals continued to raise concerns about helping the country acquire more funds amid the war.
In addition, Russia had also adopted the use of cryptocurrencies to help it evade the US sanctions. Thus, it is correct to say that both sides of the Russia-Ukraine conflict are being funded by crypto.