LONDON (Reuters) – Bitcoin donations have soared to Ukrainian volunteer and hacking groups, a few of which have equipped tools to government forces, in accordance to a report displaying such groups obtained greater than $550,000 value of cryptocurrency in 2021.
The report, printed on Tuesday by blockchain researcher Elliptic, suggests digital currencies are rising in significance as a funding technique for volunteer groups backing Ukraine’s government as fears of an assault by Russian troops massed close to its border develop. Moscow denies planning an assault.
Cryptocurrency value simply $6,000 was raised by the groups in 2020, Elliptic mentioned.
Cryptocurrencies may be despatched and obtained anonymously, permitting organisations to increase cash even when monetary corporations don’t permit – or impose strict checks on – transfers of funds.
“Cryptocurrency has proved to be a sturdy and rising different (to conventional foreign money) – particularly when it comes to donations from different international locations,” Elliptic mentioned.
In 2020, Ukraine tightened checks to curb cash laundering, demanding ID verification for some home money transfers. Cross-border transfers are additionally topic to obligatory monitoring, in accordance to the Ukrainian National Bar Association.
Elliptic tracks the motion of cryptocurrency on the blockchain for monetary corporations and government businesses. It mentioned one group, Kyiv-based Come Back Alive, started elevating funds in crypto in 2018 and obtained crypto value nearly $200,000 within the second half of 2021 alone.
Come Back Alive says it gives materiel and medical provides to Ukraine’s military together with drones, sniper-rifle scopes and cell surveillance techniques.
The donations web page of its web site lists a bitcoin digital pockets handle and particulars of its checking account, a crowdfunding website and its SWIFT international interbank funds code. Its funds are primarily raised in conventional currencies, with 199 million hryvnias ($7.1 million) raised since 2014.
Come Back Alive didn’t reply to a request for remark.
Reuters couldn’t independently confirm the crypto donations obtained by it or different groups. Ukraine’s defence ministry had no fast touch upon the report.
HACTIVISTS AND CYBER-PARTISANS
Another group, the Ukrainian Cyber Alliance, raised nearly $100,000 over the previous yr in crypto, Elliptic mentioned.
The group’s Facebook web page describes it as “a neighborhood of Ukrainian hacktivists from completely different Ukrainian cities and components of the world,” and lists a bitcoin digital pockets handle.
A spokesperson for the Alliance advised interviewers final yr that the group aimed to get hold of info on Russian safety and political figures and handed info to Ukraine’s army.
Another Ukrainian group, the Myrotvorets Center, publishes private info – a apply referred to as doxxing – on these it deems “pro-Russian.”
Its web site says it gives info for regulation enforcement and particular providers, and lists a bitcoin donation handle and channels for donating conventional currencies.
The Myrotvorets Center has raised a minimum of $267,000 by over 100 bitcoin donations, Elliptic mentioned.
Myrotvorets and the Cyber Alliance didn’t reply to a request for touch upon the crypto donations or their fundraising with conventional currencies.
Another group that has acted in Ukraine’s pursuits, the Belarusian Cyber-Partisans, has raised three-and-a-half bitcoin with a mixed present market worth of $155,000.
The group doesn’t increase cash in conventional currencies as “it is onerous to arrange a secure technique,” mentioned Yuliana Shemetovets, a spokesperson for the group.
The group gives a bitcoin digital pockets handle for donations on the Telegram messaging app and on its Twitter feed, which has nearly 67,000 followers. It has raised $84,000 in crypto within the final six months, Elliptic mentioned.
(Reporting by Tom Wilson in London; further reporting by Pavel Polityuk in Kyiv, Editing by Timothy Heritage)
