Key Takeaways
- Ukraine has received hundreds of millions in crypto donations since the war began.
- Russia has begun regulating Bitcoin mining and greenlit domestic companies to use BTC in international trade.
- BRICS member states are testing blockchain/crypto-based systems for international trade.
A Russian citizen from Yakutia has been sentenced to seven years in prison for providing financial assistance to Ukraine’s military, marking the first public court verdict to involve the use of crypto to finance a warring state.
Suspicion of Treason
As per Russian media, an unnamed Russian citizen has been sentenced to prison for funneling cryptocurrencies to help fund Ukraine’s armed forces. The individual, whose identity remains anonymous, was reported to have been working at a diamond mining company.
After joining a social media group that connected him with the Armed Forces of Ukraine (AFU), he was instructed on how to transfer crypto to the AFU, which the Russian government deems a terrorist organization. A separate case may soon become the second sentencing of its kind.
Crypto donations have been pouring into Ukraine since the conflict began. As per on-chain data for notable charity, StandWithUkraine.com, it has received just over 651 BTC since 2022.
Any Means To Ease the Economic Strain
The news follows increasing efforts from the Russian government to legitimize crypto, or at least cryptocurrency mining, across the nation. Recently, Russia’s Finance Minister, Anton Siluanov, gave companies the go-ahead to use Bitcoin (BTC) for international trade.
Presumably, the ongoing conflict in Ukraine and the painful economic sanctions imposed on Russia have prompted politicians to seek any means necessary to quell the economic strain. That said, Russia has seemingly shot itself in the foot as even its mining ambitions may struggle due to regional power shortages.
Though some consider it to be too little, too late, it coincides with broader initiatives laid out by the BRICS union, which are all working towards blockchain- and crypto-focused projects with shared aims of establishing separate economic and trade systems independent of Western networks.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
