President Putin - Foreign policy

Russia Receives Over $2 Million in Cryptocurrency Donations

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According to a report by Chainanalysis, a total of 54 pro-Russian organizations that have received over $2.2 million in BTC, ETH, Tether, LTC, and DOGE to provide equipment and logistics to paramilitary groups in the Donbas region of Ukraine. These territories are subject to OFAC sanctions.

The crypto donations received by the pro-Russia groups are being used to purchase weaponry, drones, bulletproof vests, communication devices, and other military supplies.

The blockchain intelligence firm explains that paramilitary groups have used social media to show how they use crypto donations to buy weaponry. As an example, the report reads a statement from one of the allegedly identified pro-Russia social media accounts asking for funds to buy a drone.

“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.” Similarly, other groups have publicly shown purchases of medical equipment such as first aid kits and medical bags. Chainnalysis points out that despite not having received large amounts of money, they can strongly influence the effectiveness of the militias.
Chainalysis explains that even though the total amount received by the Russian groups is small, it could drastically improve Russia’s effectiveness during the war because the Ruble (Russia’s local currency) has considerably lost its value. Cryptocurrencies are considered a hedge against inflation and the devaluation of weak fiat currencies.

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