The Russian invasion has created a testing ground for some of the most ambitious — and cynical — use cases for cryptocurrency, in addition to uprooting the lives of Ukrainians and throwing the world order into upheaval.
On the one side, cryptocurrency has evolved as a mechanism for individuals and organizations to support and donate to Ukrainians (as well as a new frontier for online scammers).
However, there have been accusations of Russian oligarchs employing the technology to circumvent a growing number of financial penalties. We’ll also look at how a member of the Russian punk band PussyRiot is supporting Ukraine by selling an NFT of the Ukrainian flag.
According to Elliptic data, $55.7 million has been raised since Russia began military activities in Ukraine last week.
Donations are given directly to the Ukrainian government account for a large portion of this. Ukraine’s minister for digital transformation, Mykhailo Fedorov, tweeted wallet addresses into which individuals may directly give bitcoin, ether, and tether, a stable coin tethered to the US dollar, three days after Russia’s invasion.
The identical addresses were shared on Ukraine’s official Twitter account. According to Elliptic, almost $47 million has been donated to these wallets since then. The success could have a significant impact on fundraising in Ukraine and internationally.
Millions of dollars in cryptocurrency donations have been raised for Ukraine.
Since Russia began military actions in Ukraine last week, more than $50 million in cryptocurrency has been raised for the country. Many of these donations were made to the Ukrainian government directly.
Ukraine’s digital transformation minister, Mykhailo Fedorov, tweeted wallet handles for cryptocurrency donations, which were also shared by Ukraine’s official Twitter account. According to Elliptic, a blockchain analysis firm, over $47 million in cryptocurrency has been donated this way.
NFT earns $6.7 million for Ukraine with the help of a member of the Russian punk band PussyRiot.
Apart from direct donations to the Ukrainian government, UkraineDAO, an online organization supported by a member of the Russian punk rock band PussyRiot, has raised millions of dollars by auctioning a Ukrainian flag offered as an NFT.
Contributors were allowed to share ownership of the NFT, with 3,200 individual contributions totaling $6.7 million in ether made in 72 hours.
Scammers are attempting to profit off the conflict in Ukraine.
If you wish to donate to aid Ukrainians, you should be careful of social media scams that profit off the conflict in Ukraine. Fake charities and other groups purporting to support Ukrainians might be used in these scams.
Anyone wishing to donate cryptocurrency should exercise caution, as cryptocurrency transactions are often irreversible and difficult to track. If you’re thinking about contributing, take a look at Legit’s list of organizations and make sure you do your homework first.
Cryptocurrency exchanges do not wish to exclude Russian users from using their services.
While the White House has yet to comment on the matter, Bloomberg claims that the Biden administration has requested cryptocurrency exchanges to prohibit Russian individuals and groups from avoiding US sanctions by utilizing virtual currencies.
According to Bloomberg, a White House official stated that the US government is vigorously combating any exploitation of digital assets in order to avoid penalties. According to Reuters, Binance, Coinbase, and Kraken, all of which are based in the United States, have agreed to check customers and block anyone who is subject to sanctions, although the exchanges have not gone so far as to ban all Russian clients. By market capitalization, Binance and Coinbase are the two largest cryptocurrency exchanges in the world.