Chainalysis, the blockchain analysis specialist, publishes an investigation in which we learn that some pro-Russian propaganda media are calling for donations in cryptocurrencies. These donations are used to finance paramilitary groups, operating in particular in the Donbass region.
Pro-Russian militias receive cryptocurrency donations
In an investigation published on Friday, Chainalysis reports on donations received in cryptocurrencies by pro-Russian fighters in connection with the invasion of Ukraine. According to the analysis of the activity on the various blockchains, 54 organizations could thus be identified.
In total, more than 2.2 million dollars were collected. Various propaganda media on social networks serve as intermediaries to collect the funds, in order to redistribute them to the fighters. Bitcoin (BTC) and Ether (ETH) are the main sources of revenue, as shown in the graph below:
Cryptocurrency donations collected by pro-Russian media
According to Chainalysis, about half of the propaganda actors, calling for donations, are doing so to benefit paramilitary groups in the Donbass region.
Among these various supporters is Alexander Zhuchkovsky, an activist subject to sanctions by the Office of Foreign Assets Control (OFAC). Since 2014, he has reportedly managed to raise 200 million rubles to finance military equipment, the equivalent of $3.21 million.
Funds used to buy military equipment
The investigation reveals that the media involved regularly publish photos of the equipment purchased. This includes all the classic military equipment one can imagine: weapons, ammunition, bulletproof vests, but also drones. Chainalysis also notes some explicit communications:
[“
“].
” […] we only have 150,000 rubles left to collect for a drone that can bring gifts to the positions of our Ukrainian friends. We hope we can shoot it on video and delight you with interesting shots. “
While such use of our ecosystem is to be deplored, it should be put into perspective. As Chainalysis points out, compared to the donations received by Ukraine, these donations are a minority. Moreover, the public nature of the blockchains used allows valuable information to be gleaned, which can then be shared with the relevant authorities.
