Ukrainian Agency Seizes Pro-Russian Cryptocurrency Wallet

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  • Ukrainian security agency grabs the crypto wallet of a Russian activist.
  • The activist used the crypto wallet to sponsor Russia’s military effort in the Ukraine.
  • Ukraine had implemented a mechanism to stop fundraising through cryptocurrency for Russian troops.

Security Service of Ukraine (SBU), the law enforcement and counterintelligence agency of Ukraine seized funds in a cryptocurrency wallet that is used to finance the Russian military campaign in Ukraine.

The announcement was made by the SBU on Tuesday and the agency mentioned that the wallet was operated by a citizen of the Russian Federation. The citizen used the wallet to sponsor Russia’s military effort in Ukraine. A portion of the donations in the wallet was also used for purchasing military supplies for Russian forces.

Now, for the first time, Ukraine implemented a mechanism to stop fundraising through cryptocurrency for Russian troops in its tracks.

The Russian activist did not keep his cause under wraps as he has taken to social media on occasion to seek financial assistance. He has also been creating and posting video and photo content.

In total, the wallet has accumulated a variety of digital coins that is worth about 800,000 hryvnias. At the current rates, this is about $22,000 worth of digital coins. According to the SBU, all of these funds have been seized.

It is not yet clear how the SBU seized these funds, but the agency acknowledged that it did receive help from foreign crypto companies.

However, the Russian activist is not the only one raising crypto funds for Russian forces. Chainalysis revealed that pro-Russian groups have collectively received more than $2.2 million worth of cryptocurrency. BTC and ETH are some of the most donated cryptocurrencies.

The conflict between Russia and Ukraine boiled over into a full-scale war when the Russian army crossed the Ukrainian border in late February of 2022. Russia called this invasion a “special military operation” to support the pro-Russian breakaway groups of Luhansk and Donetsk.