Ukraine has received more than $70 million in cryptocurrencies since the start of the Russia-Ukraine conflict, providing the nation with funds for military equipment and humanitarian aid.
The figure comes from a February 24 report by blockchain data platform Chainalysis, which found the majority of these funds in the form of Ether (ETH) and Bitcoin (BTC).
ETH donors led the way with $28.9 million given, while BTC and Tether (USDT) donors gave $22.8 million and $11.6 million respectively.
Donations also come in the form of nonfungible tokens, such as UkraineDAO’s auction of NFT thasold Ukraine flag for $6.1 million.
Around 80% of the total $70 million contributed came in the first few months of the war, with the speed of cryptocurrency payments quickly tracking the country’s ability to respond to the Russian invasion, Deputy digital minister of Ukraine Alex Bornyakov explained in an interview with Yahoo. Finance on February 24:
“If we use the traditional financial system, it will take a few days […] We can secure the purchase of important things quickly through crypto, and what is surprising is that about 60% of suppliers can accept crypto, I did not expect this.
Bornyakov added that the Crypto Fund Aid For Ukraine was an “absolute success” and that he was surprised not only by the amount of donations made, but also by how easily the digital ministry could access the funds for the defense of Ukraine.
Alona Shevchenko, co-founder of Ukrainian DAO, also explained to Yahoo Finance that cryptocurrencies provide a solution when restrictions are imposed on the central banking system of Ukraine:
“The central bank introduced restrictions on foreign currency transfers to and from Ukraine to stop the run on the hryvnia. […] Thanks to crypto, we were able to cover some of the immediate needs of defenders, there was no other way at the time.
According to an August tweet bMykhailo Fedorov, deputy prime minister of Ukraine and minister of digital transformation, many cryptocurrency payments to the digital ministry have been used to finance the country’s military equipment, armor and some vehicles and medicine.
With $ 54 M raised by @_AidForUkraine, we have provided our defenders with military equipment, armor, medicine and even vehicles. Thanks to the crypto community for their support since the beginning of the full-scale invasion! Donation by donation for big victory. Report below. pic.twitter.com/lifHAP8R4f
— Mykhailo Fedorov (@FedorovMykhailo) August 17, 2022
The increased reliance on cryptocurrencies in Ukraine appears to have increased adoption in the country, with a September report by Chainanalysis finding Ukrainians to be the third highest adopters, behind Vietnam and the Philippines.
related: What the Russia-Ukraine war has revealed about crypto
However, pro-Russian military groups have also used cryptocurrency to crowdfund war efforts, including using crypto donations to finance military purchases, spread disinformation and create pro-invasion propaganda, according to Chainalysis.
The group of 100 has received a total of $5.4 million during the war, but incoming donations have dropped sharply since July.
It is not clear what impact the sanctions have on this downward trend, but the 10th package of sanctions against Russia began on February 24.
Meanwhile, a new crime report by Chainalysis found that out of a total of $456.8 million in ransomware payments in 2022, the majority of these funds were taken by “actors” believed to be based in Russia.
Chainalysis explains that these attacks are often used by bad actors for political agendas, such as the Russia-based pro-conflict ransomware group Conti, which generated $66 million from victims in 2022 and previously announced “full support” from Russia. government.