Rising tensions with Russian forces have Ukrainians turning to a surprising source of help: Bitcoin. New data shows that Ukrainian volunteer groups are crowdfunding the crypto to support their troops.
In its latest report, Elliptic, which sells blockchain analytics tools to banks and cryptocurrency platforms like Binance and Circle, revealed how NGOs and volunteer groups are using cryptocurrency to fund operations against Russia.
Several hundred thousand dollars worth of cryptocurrency donations, made to Ukrainian NGOs and volunteer organizations, have been used for a range of purposes, including equipping the Ukrainian military with military gear, medical supplies and drones, said Elliptic.
“Elliptic has identified several cryptocurrency wallets used by these volunteer groups and NGOs, which have collectively received funds totaling just over $570,000 – much of it over the past year,” per the report.
It should be noted that Russia has deployed 100,000 to 130,000 troops on its borders with Ukraine and Belarus. U.S. troops, who are allies with Ukraine, have moved 3,000 soldiers into the region.
According to the report, Bitcoin donations are being made to organizations including Come Back Alive, which provides training and medical equipment. They’ve also been made out to the Myrotvorets Center, which works with the Ukrainian government. Donations have even been sent to groups like Ukrainian Cyber Alliance and Belarusian Cyber-Partisans, which have attacked Russian targets with cyberattacks.
Crypto donations were not Ukraine’s idea of financing a conflict, per Elliptic. The platform reported that pro-Russia groups started using Bitcoin fundraising in 2014, and other organizations are now simply taking note and following suit.
From WikiLeaks to Russian opposition politician Alexei Navalny, there’s a long history of controversial causes using cryptocurrency to raise funds. However, using crypto donations to fund the war or military is new. Earlier this month, a report stated that North Korea used stolen Bitcoin to fund its missile program.