The Security Service of Ukraine (SSU) seized and blocked a cryptocurrency wallet used to fund the Russian military campaign in the country. The agency is working on tracking the funds and transferring them under Ukrainian jurisdiction, according to the SSU.
See related article: Vitalik Buterin says he used Tornado Cash to donate to Ukraine
Fast facts
- According to a press release on Tuesday, this is the first time the SSU implemented a mechanism to block the crypto wallets of Russian citizens raising funds for the Russian army.
- The SSU arrested a self-proclaimed Russian volunteer, blocking his crypto wallet that held over US$19,500 worth of cryptocurrency. They claim that the arrest was possible due to evidence gathered by the security service and the assistance of unnamed foreign crypto companies.
- The SSU further states that the unidentified Russian citizen used a significant portion of the crypto donations to purchase military gear for the separatist fighters of the Luhansk and Donetsk People’s Republic (L/DNR). He raised crypto donations by running social media campaigns since the start of Russia’s invasion of Ukraine.
- The SSU ended its press release warning that “a similar fate awaits other Russian ‘volunteers’ who sponsor the war in Ukraine.”
- Both sides of the conflict have been relying on crypto donations to aid their military efforts. On August 17, Ukraine spent US$54 million worth of crypto donations on war supplies.
- On the other side of the war, 54 pro-Russia groups have received over US$2.2 million worth of crypto donations by the end of July, mainly in Bitcoin and Ether, according to a Chainalysis report. Russia has also been sending record-high funds to crypto mixers since April 2022.
See related article: Crypto is playing a prominent role in the Ukraine War — on both sides of the conflict