Russia-Ukraine war: How both sides of the conflict have used crypto to win

In the war between Russia and Ukraine, both sides of the conflict have been leveraging cryptocurrencies to gain the upper hand.

Pro-Ukraine causes have raised around $200 million in crypto donations, showing how borderless and uncensored money could come in handy in times of emergency.

But the Russian side has also taken advantage of cryptocurrencies: pro-Kremlin groups and propaganda outlets raised a total of around $5 million in the course of the invasion, as a recent Chainalysis revealed. report. These entities are small grassroots organizations that have used cryptocurrency to circumvent Western financial sanctions.

“We are really looking for individual actors. So someone who is on the front lines, someone who is trying to help provide more military resources to the front lines. [...] things like bulletproof vests or drones,” explained Andrew Fierman, Head of Sanctions Strategy at Chainalysis and one of the report's authors.

But those numbers don't factor in ransomware attacks: As Chainalysis data shows, over the course of 2022, more than $450 million was paid to these entities, most of which are believed to be based in Russia. Some of them, like the Conti cybercriminal group, have openly supported the Russian government in its war effort.

“When it comes to ransomware payments, a lot of times the bad actors have some sort of political agenda behind what they're doing,” Fierman noted.

To learn more about the impact of cryptocurrencies on the Ukraine conflict and how Russia has harnessed it to advance its cause, watch the full interview on our YouTube channel and don't forget to subscribe!