Russia Received $2M In Crypto Donations: Chainalysis Data

Russia received $2M in crypto donations according to the latest data from Chainalysis, indicating that pro-Russian groups are continuing to raise funds to fund the war against Ukraine so let’s read more today in our latest cryptocurrency news.

The Ukrainians made a few headlines after they got millions in crypto donations but it seems that they are not the only ones that are getting funds. Chainalysis released a report showing that pro-Russian groups raised more than $2 million in crypto donations to fund the war against Ukraine. According to the report, Russia received $2M in crypto donations via 54 organizations that poured in funds in BTC, ETH, LTC, DOGE, and Tether to provide equipment and logistics to paramilitary groups in the Donbas region of Ukraine.

According to Chainalysis, the crypto donations received by the pro-Russian groups are being used to buy weapons, drones, equipment, and communication devices. The blockchain intelligence company explained that these paramilitary groups used social media to show how to use these donations to purchase weapons. The report reads a statement from the 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.”

Other groups also showed purhcases of medical equipment like first aid kits and medical bags but Chainalysis pointed out that despite not having received large amounts of money, they can influence the effectiveness of the militia. The reports also show that the total amount received by the Russian groups is small and can improve the effectiveness during the war because the Ruble lost value and cryptocurrencies are considered a hedge against inflation.  According to Chainalysis, these paramilitary organizations used crypto to avoid international sanctions, and over 11% of the total donations passed via coin mixers.

Chainalysis revealed that the Pro-Russian groups laundered more than $1 million via a local crypto exchange called Bitzlato. Chainalysis suggested that the increase in pro-Russian groups got donations via crypto which indicates that they might be coordinating the actions to achieve the purposes. The amount of donations they received is far less than the received by the Ukrainian governmetn which raised more than $100 million since March. Thanks to the donations and the country’s record adoption, Ukraine legalized the use of crypto and this is still very different from the moves by the Russian president who banned the use of crypto in the country for the payment of goods and services.