Blockchain Intelligence Reveals Pro-Russian Groups Raising Funds Through Cryptocurrencies
Pro-Russian paramilitary groups are hoarding bitcoin (BTC) and other crypto assets to fund their operations and avoid sanctions as the invasion of Ukraine continues, CNBC reported, citing a research report published Monday by TRM Labsa digital asset compliance and risk management company.
From the start of the invasion on February 24 this year to September 22, these groups had collected $400,000 in cryptocurrency, the report claimed.
The groups use the encrypted messaging app Telegram to provide ways for supporters to send funds. This money is then used to supply Russian-affiliated militia groups, as well as to support combat training near the border with Ukraine, the report said.
Ari Redbord, head of legal and government affairs at TRM Labs, told CNBC that these groups are “probably using non-compliant exchanges to move these funds [into fiat currency]”, referring to crypto exchanges that are less compliant with anti-money laundering (AML) and other regulations.
As they raise smaller amounts, it’s easier to move the funds — which helps their efforts to avoid various sanctions, Redbord said, adding that,
“You just can’t do it on a large scale. And […] Will there be more? Of course there will be more. But will it be billions of dollars? Highly unlikely.”
He claimed that
“I think an interesting part of this story is that crypto is just a form of payment in these cases. It’s a way of moving funds. And it’s an example of it being used for good and an example of it is used for the bad in this context.”
Task Force Rusicha group sanctioned by Treasury Department’s Office of Foreign Assets Control (OFCA), is one of these organizations identified by TRM Labs. They are asking for funds which they will spend on items such as radios and thermal imaging equipment.
On its website, US Treasury Secretary included Task Force Rusich back in September on the list of designated individuals and entities facilitating Russia’s aggression in Ukraine, saying that
It is “a neo-Nazi paramilitary group that has engaged in combat alongside Russia’s military in Ukraine, as well as two of its senior leaders.”
Another named entity is Novorossia Aid Coordinating Centerwho raised about $21,000 in crypto, mostly in BTC, to buy equipment — especially drones, the report said.
While TRM Labs used publicly available wallet addresses, while cross-checking websites and online activity to identify the Russian-linked groups, Redbord said it is impossible to know whether these groups worked with the Russian government or were somehow supported by the.
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Learn more:
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– Bitcoin helps both sides in the Ukraine war, but it will not destroy Russian sanctions
– Stop your crypto business in Russia, Washington tells Japanese exchanges and miners
– Russian oligarchs are unlikely to use crypto to avoid sanctions – Coinbase CEO
– Washington, Europe vows to target Russian crypto sanctions
