$4.1 million in cryptocurrency funneled to Ukrainian army since Russia attacked
Key takeaways:
- According to recent data from blockchain analytics company Elliptic, donations being funneled to the Ukrainian military in cryptocurrencies like bitcoin are millions of dollars.
- Research reveals that $4.1 million in crypto has been increased for the military since the attack started, including a single $3 million donation early Friday.
Cryptocurrency funneled to Ukrainian army:
According to new data from blockchain analytics company Elliptic, donations being funneled to the Ukrainian military in cryptocurrencies like bitcoin are millions of dollars.
Research indicates that $4.1 million in crypto has been raised by non-governmental institutions and volunteer groups in Ukraine since the attack started, including a single $3 million donation early Friday.
On Thursday alone, one NGO collected over $675,000 in bitcoin, and by Friday morning, that number had ballooned to almost $3.4 million thanks to that one-off $3 million donations.
Volunteer groups have played a vital role in the Russia-Ukraine war for years. These institutions have extended the work of Ukraine’s army by offering more resources and a workforce. When Ukraine’s pro-Russian president Viktor Yanukovych was deposed in 2014, for instance, companies of organized volunteers stepped up to help protesters.
Generally, these institutions get funds from private donors via bank wires or payment apps. Still, cryptocurrencies such as bitcoin have appeared as an essential alternative funding method since they permit quick, cross-border donations, which avoid economic institutions that might stop payments to Ukraine.
But the Ukrainian Ministry of Defense has made it evident that it won’t get crypto donations directly.
A report on the government’s website stated that “national legislation does not let the Ministry of Defense of Ukraine use other payment systems (‘Webmoney,’ ‘Bitcoin,’ ‘PayPal,’ etc.).”
That suggests that while the military accepts donations for logistics and medical help, those donations must go through fiat channels.