Russia-Ukraine conflict on the brink! Cryptocurrency donations in Ukraine surge, with NGOs receiving over $500,000 last year

The blockchain analysis company Elliptic recently reported that as the tension at the Ukraine border escalates, Bitcoin donations to Ukrainian non-governmental organizations (NGOs) have sharply increased. The amount of cryptocurrency donations received in the past year has reached up to $570,000.

Russia-Ukraine Conflict on the Brink of Eruption

With Russia amassing over 100,000 troops near its borders with Ukraine and Belarus, the withdrawal of U.S. diplomatic personnel from Ukraine, the war between Russia and Ukraine seems imminent. The United States has also deployed 3,000 troops to Ukraine, with another 8,500 on high alert.

Surge in Cryptocurrency Donations to Ukraine

According to the analysis by blockchain analytics firm Elliptic, amid escalating tensions between the two countries, Ukrainian non-governmental organizations (NGOs) received a significant amount of cryptocurrency donations in 2021, totaling approximately $570,000. These funds are intended to support military supplies for the army and cyberattacks against Russia.

The organizations receiving donations include Come Back Alive, which provides military assistance to the Ukrainian army, the Ukrainian Cyber Alliance conducting cyberattacks against Russia, and the website Myrotvorets that publishes personal information of controversial Russian figures, among others.

Emerging War Fundraising Cryptocurrencies

According to Elliptic's report, cryptocurrency donations represent only a small portion of all donations, with the majority still coming through traditional payment methods. However, the fact also demonstrates that cryptocurrencies are gradually becoming an emerging alternative for donations.

In certain situations, traditional financial institutions have the ability to control or close the bank accounts of these NGOs. Cryptocurrency transactions, on the other hand, do not have borders or central oversight issues, attracting more overseas aid to these Ukrainian groups in need of assistance.

Furthermore, due to Ukraine's longstanding issues of government corruption and asset seizures, as well as low public trust in banks, many individuals have turned to cryptocurrencies to protect their assets. According to data from Chainalysis, Ukraine currently ranks fourth globally in cryptocurrency adoption rates.