Ukraine’s Security Service (SSU) has for the first time blocked a digital asset wallet involved in funding Russian military forces.
According the SSUthe agency seized and blocked a crypto wallet allegedly linked to funding Russian military actions in Ukraine.
“That man [the crypto wallet owner] claims to be voluntary and since the beginning of the full-scale invasion of Russia [of Ukraine] collected money for the invading army,” the statement read. When seized, the wallet contained $19,500 worth of cryptocurrency.
The “volunteer” sent a significant amount of assets to “purchase military equipment for militants of L/DNR terrorist organizations”, the investigation revealed. They also used social media platforms to incentivize the funding of “illegal armed groups” with visual and video content, apparently sharing this content with other participants in their network and keeping their followers informed about how the money has been spent.
The security service shares that it was able to detect and seize the wallet and arrest the owner of the wallet with the help of “foreign crypto companies”.
The funds – the $19,500 worth of cryptocurrency – are now awaiting the “decision on their tracking and transfer to Ukrainian jurisdiction”.
The SSU has warned of a “similar fate” for anyone whose activities are linked to sponsoring the war in Ukraine.
Since Putin’s invasion of Ukraine, cryptocurrency has played an important role in the war on both sides of the conflict.
The Ukrainian government has been able to benefit from the crypto initiatives launched in an effort to support the country’s military efforts.
Aid for Ukraine, for example, is a DAO launched by Solana co-founder Anatoly Yakovenko and CEO of Everstake and is backed by FTX, Kuna Exchange and Ukraine’s Ministry of Digital Transformation to raise funds to help Ukraine to fight the invasion.
On August 17, the DAO was able to raise $54 million, said Deputy Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov.
Meanwhile, Russian citizens, heavily affected by sanctions of the West, have looked into cryptocurrency as a method of payment and investment.
The Russian government accelerated the launch of its digital ruble, which it had previously postponed, in order to avoid sanctions and support the falling economy. According to the Central Bank of Russia, individuals and businesses in Russia will be able to use the digital ruble “like real money” by 2023.
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