Ukraine has raised $212 million in crypto since war broke out, study finds

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The conflict between Ukraine and its invading power, Russia, has raged for just over a year, with no end in sight.

Both sides rely on all available resources to support their military and humanitarian activities, and it seems that crypto assets and technology have become the latest tools in their arsenal.

A recent report from Elliptic, a blockchain forensics firm, revealed that both countries are accepting donations in the form of digital assets.

However, the report also showed that the targeted nation, Ukraine, attracted more digital asset donations than its invader.

Since Russian forces attacked Ukraine on February 24, 2022, both sides have been using blockchain technology to secure funding for their military campaigns, according to a recent report by Elliptic.

Image: Center for Strategic and International Studies

The report, which delves into the ever-evolving role of cryptocurrencies in the ongoing conflict, draws on data collected by the crypto-analytics firm over the past year.

In a stunning revelation, the latest analysis of transactions traced by Elliptic has revealed where the bulk of crypto assets have been routed in the ongoing dispute.

Elliptical Report: $212 Million in Crypto for Ukraine

A staggering $212.1 million in digital assets has been funneled into support for Ukraine, while anti-government organizations in Belarus, a staunch political and military ally of the Russian Federation, have received just $0.7 million in comparison.

The findings highlight the staggering scale of the conflict and the immense pressure on both sides for funds to fuel their military campaigns.

Nearly $5 million has been raised in cryptocurrency donations by pro-Russian organizations, including those supporting the Russian military and affiliated militias.

Other organizations, including some linked to sanctioned groups, have tried unsuccessfully to replicate Ukraine’s achievements with NFTs and DeFi.

Chainalysis Results: $70 Million in Crypto

Meanwhile, on the first anniversary of Russia’s invasion of Ukraine, a new study by Chainalysis has revealed that the Ukrainian government only received $70 million in crypto donations during the conflict.

The blockchain data platform highlighted how the government had effectively exploited cryptocurrencies, especially Bitcoin (BTC) and Ethereum (ETH), to support their war efforts.

Total Crypto Market Cap At $1 Trillion On Weekend Chart | Chart: TradingView.com

In the face of chaos and devastation caused by the Russian invasion, Ukraine was able to turn to cryptocurrencies for a ray of hope. The speed of crypto payments would prove to be a crucial factor in the country’s ability to respond to the conflict, according to Ukraine’s Deputy Digital Minister Alex Bornyakov.

In a recent interview with Yahoo Finance, Bornyakov discussed how the ability to receive crypto donations has accelerated the country’s ability to respond to the invasion, giving their military campaign a much-needed boost.

Donations poured in during the first few months of the war, with around 80% of the total $70 million in crypto funds received during this period.

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