Various ways are used by the world's citizens to support Ukraine in the midst of Russia's onslaught. One of them is by giving donations in the form of crypto currency.
Data from blockchain analytics firm Elliptic shows that over a 12-hour period, $400,000 worth of bitcoin was donated to Come Back Alive, a Ukrainian non-governmental organization that provides assistance to the armed forces.
Another group, the Ukrainian Cyber Alliance, has received $100,000 in bitcoin, litecoin, ether and other stablecoins since last year. Since 2016, activists belonging to this group have launched cyber attacks on Russia.
Activists use crypto donations for a variety of purposes, including providing weapons to Ukrainian soldiers, medical devices, drones, and funding for facial recognition apps designed to identify Russian spies or mercenaries.
"Cryptocurrencies are increasingly being used to raise funds for war, with the tacit approval of governments," said Elliptic Chief Scientist Tom Robinson, as quoted by CNBC, Saturday (26/2/2022).
Volunteer groups have long been strengthening the Ukrainian military by offering additional resources and manpower. Usually these organizations receive funds from private donors via bank transfers or payment applications.
But recently cryptocurrencies such as bitcoin are starting to become a popular choice, because payments can be made by bypassing financial institution regulations that might hinder the processing of payments to Ukraine.
According to Elliptic data, volunteer groups and non-governmental organizations have raised more than $1 million worth of cryptocurrency in total. But the number of incoming donations continues to rise amid the recently launched Russian offensive.
On the other hand, pro-Russian separatist groups have also been raising funds in bitcoin since the early days of the conflict. Fintech data analyst Boaz Sobrado said some of Russia's top brass said they were not cutting off opposition bank accounts because they feared they would switch to more difficult-to-trace cryptocurrencies.
Sobrado said that raising funds in the form of crypto for controversial cases has often happened. For example, Alexei Navalny, a Russian politician who is in opposition to Vladimir Putin, received a bitcoin donation after being thrown into prison last year.
Ukraine has also begun to take steps to adopt cryptocurrencies at the national level. Ukrainian President Volodymyr Zelensky and parliament have just reached an agreement on a law that will regulate and legalize cryptocurrencies.