Ukrainian servicemen sit atop armored personnel carriers driving on a road in the Donetsk region, eastern Ukraine, Thursday, Feb. 24, 2022.
Vadim Ghirda | AP
Bitcoin donations to the Ukrainian army are soaring after Moscow launched a large-scale offensive early Thursday, attacking several Ukrainian cities, including the capital city of Kyiv.
New data from blockchain analytics firm Elliptic shows that over a 12-hour window on Thursday, nearly $400,000 in bitcoin was donated to Come Back Alive, a Ukrainian nongovernmental organization providing support to the armed forces.
The fresh round of crypto donations capitalizes on a trend seen in recent weeks, in which donations totaling hundreds of thousands of dollars have flooded into Ukrainian NGOs and volunteer groups working to stave off a Russian offensive, according to Elliptic, which sells blockchain analytics tools to banks and some of the world’s largest cryptocurrency platforms, including Binance and Circle.
Activists have deployed the crypto for a variety of purposes, including equipping the Ukrainian army with military equipment, medical supplies, and drones, as well as funding the development of a facial recognition app that identifies if someone is a Russian mercenary or spy.
“Cryptocurrency is increasingly being used to crowdfund war, with the tacit approval of governments,” said Tom Robinson, Elliptic’s chief scientist.
Borderless and censorship-proof
Volunteer groups have long augmented the work of Ukraine’s military by offering additional resources and manpower. When pro-Russian president Viktor Yanukovych was ousted in 2014, for example, volunteers stepped up to support protesters.
Typically, these organizations receive funds from private donors via bank wires or payment apps, but cryptocurrencies such as bitcoin have become more popular since they allow them to bypass financial institutions that might block payments to Ukraine.
Volunteer groups and NGOs have collectively raised over $1 million in cryptocurrency, according to Elliptic, though that number appears to be quickly moving higher as donations come in amid Russia’s newly launched offensive.
A military column approaches the Perekop checkpoint on the Ukrainian border. Early on February 24, President Putin announced a special military operation to be conducted by the Russian Armed Forces in response to appeals for help from the leaders of the Donetsk and Lugansk People’s Republics.
Sergei Malgavko | Tass | Getty Images
Come Back Alive, which has accepted cryptocurrency since 2018, provides the military with equipment, training services and medical supplies.
Another group, the Ukrainian Cyber Alliance, has received close to $100,000 in bitcoin, litecoin, ether and a mix of stablecoins over the last year. Since 2016, Alliance activists have engaged in cyberattacks against Russian targets, says Elliptic.
On the other side pro-Russian separatists have been raising funds in bitcoin since the early days of the conflict.
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