Ukraine claims it blocked a crypto wallet used to receive donations for Russian forces.
The law enforcement and counter-intelligence agency of Ukraine has managed to seize the funds in a cryptocurrency wallet used to finance the Russian military campaign in the country. Officials in Kyiv claim that money collected through the wallet has been spent on military equipment for the pro-Russian separatist forces in the east.
In a press release on Tuesday, the SBU announced that a crypto wallet operated by a citizen of the Russian Federation and used to sponsor Russia’s military effort in Ukraine has been blocked. The man, who presented himself as a volunteer, has been gathering money for the needs of the Russian forces since the start of the invasion.
The wallet had accumulated digital coins worth 800,000 hryvnia by the time it was blocked, the SBU said, adding that the funds have since been seized. Experts are now working to track the related transactions and transfer custody to Ukraine. The agency did not specify how it seized the wallet but revealed that it was assisted by foreign crypto companies.
Ukrainian investigators have been able to establish that the wallet’s owner devoted a significant portion of the donated crypto to the purchase of military supplies for the separatist fighters of the self-proclaimed Luhansk and Donetsk People’s Republics. Representatives of the National Police of Ukraine and the Prosecutor General’s Office also took part in the operation.