A Year After Invading Ukraine, Russian Military Groups Raise $20M in Crypto Despite Sanctions
Russian military fundraising groups have managed to raise millions of dollars in cryptocurrencies, even in the face of sanctions imposed by the U.S. and other countries. While the amount raised, approximately $4.2 million, is comparatively smaller than Ukraine’s over $212 million, research by blockchain analytics firm Elliptic has revealed that Russia has raised as much as $20 million in cryptocurrencies.
Key Points:
– Research by Elliptic shows that half of the donated funds came through U.S.-sanctioned entities.
– Centralized crypto exchanges were the most common destination for the funds from sanctioned pro-Russian entities.
– The entities also engaged with decentralized finance (DeFi) protocols, including cross-chain bridges, non-fungible token (NFT) services, and decentralized exchanges (DEXs).
– Some individuals and groups see digital assets as a source of fundraising, while others view them as an incentive.
– The movement of funds highlights the growing sanctions risk in the crypto sector and the need for effective compliance regimes.
This revelation raises concerns about the effectiveness of global sanctions regimes and the exposure of supposedly humanitarian groups to sanctioned individuals. It also emphasizes the importance of implementing robust compliance measures in the nascent crypto sector.
Hot Take:
Despite sanctions and international efforts to curtail their fundraising activities, Russian military groups have managed to raise a significant amount of money in cryptocurrencies. This demonstrates the challenges faced by global authorities in regulating the crypto industry and preventing illicit fundraising for military purposes. It also underscores the need for stronger compliance measures and international cooperation to address this issue effectively.
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