According to a report stemming from the blockchain intelligence company Chainalysis, the firm identified 54 pro-Russian groups that have “collectively received over $2.2 million worth of cryptocurrency.” The paramilitary groups in Ukraine primarily received bitcoin and ether donations but also got tether, litecoin and dogecoin as well, the Chainalysis study details.
$12.2 million in crypto sent to pro-Russian groups located in Ukraine according to Chainalysis
Chainalysis estimates that pro-Russian paramilitary units located in Ukraine’s Donbas have acquired crypto assets worth more than $2.2 million. Chainalysis reveals that these recipients are located in Donetsk, and Luhansk.
There’s been a conflict in Donbas and the Donetsk and Luhansk regions of Ukraine for quite some time. Separatists insist Donbas declared independence from Kyiv in 2014, and pro-Russian military groups agree with the separatists’ declarations. The blockchain intelligence company’s study notes that it discovered roughly 54 pro-Russian groups that have obtained donations in crypto assets.
“Most of the cryptocurrencies donated thus far have been sent to just a few organizations in particular,” the Chainalysis report explains. “However, many more have received still-considerable sums. Five organizations have received over $100,000, 17 have received over $10,000, and 35 have raised more than $1,000 worth of cryptocurrency.”
After the February Ukraine-Russia war, 54 proRussian organizations in Donbas acquired $1.45M in bitcoin donations (BTC) and $590K ethereum donations (ETH).
“The accounts that support militias often publish pictures of the purchased equipment and descriptions of how future donations will be used,” the Chainalysis report says with an accompanying picture of military equipment purchased with crypto. “Sometimes the posts even itemize the purchases,” Chainalysis researchers wrote.
Chainalysis Says Onchain Data Gives ‘Gleaning Insights Into Pro-Russian Activities’
Chainalysis’ news was released on July 29, 2022. The conflict between Russia and Ukraine is continuing unabated. Recent mining studies have shown Russia to be a favorite destination for crypto-asset miners. Intelion Data Systems published research that found crypto miners flocking to Moscow Oblast, Karelia and Buryatia.
Furthermore, many believe that Russia, China, and the BRICS nations are targeting the U.S. dollar’s perceived hegemony by crafting a new international reserve currency. Recent attacks on Ukrainian separatist regions’ prisoner-of-war prisoner in war jails in Russia have led to Russia and Ukraine exchanging blame.
The Chainalysis report further says that funds are being sent to people listed on the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned individuals list. For instance, “Alexander Zhuchkovsky, an OFAC-designated Russian national, has used social media to solicit donations for the Russian Imperial Movement.”
Chainalysis analysts agree that $2.2 million is quite a large sum of crypto, but they also consider the data useful. “Because public blockchains are transparent, we can follow each transfer in these accounts’ chains of payments, gleaning insights into pro-Russian activities that would be harder to extract from fiat money investigations,” the company’s report concludes.
Let us know your thoughts on the Chainalysis Report that provides details about $2.2 Million sent to pro-Russian organizations in Ukraine. Comment below and let us know how you feel about the subject.
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