Ukraine government raises over $10 million in cryptocurrency donations

Ukraine’s President Volodymyr Zelenskyy holds a press conference on Russia’s military operation in Ukraine, on Feb. 25, 2022 in Kyiv.

The government of Ukraine has raised more than $10 million in cryptocurrencies to help it through the invasion from Russia.

One of the addresses posted on the official account of the Ukrainian government is for a wallet that accepts only the digital currency, while the other is for a wallet that accepts ether and tether, a token that tracks the value of the U.S. dollar.

According to research from Elliptic, those wallets have attracted $10.2 million worth of coins. The Ukrainian military has received millions of dollars in digital currency from nongovernmental organizations.

Elliptic said that the money donated to the government of Ukraine was generated through the sale of a non-fungible token, originally intended to raise funds for the founder of WikiLeaks.

Digital assets are designed to represent ownership of virtual items, such as artwork or video game characters.

The development shows how Ukraine is turning to the internet for help during Russia's military offensive in the country.

Come Back Alive, an organization that provides equipment to the Ukrainian military, has accepted donations in the past year. Since Russia's invasion began, it has raised millions of dollars in digital currency.

Elliptic says that the total amount of donations to the Ukrainian government and NGOs is $16.7 million.

Tom Robinson, Elliptic's chief scientist, wrote in a post on Sunday thatcryptocurrencies such as Bitcoin have emerged as an important alternative method.

The Come Back Alive page on Patreon was suspended this week because the company doesn't allow campaigns involved in violence or purchasing of military equipment.

The Ukrainian military initially suggested it couldn't accept funds in digital currencies, with a statement on the government's website saying national legislation doesn't allow it to use other payment systems.

This stance appears to have been relaxed by the government.

Ukrainian Minister of Digital Transformation Mykhailo Fedorov called on major exchanges to block payments to Russian users.

It is crucial to freeze the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users.

The U.S., European allies and Canada agreed to remove Russian banks from Swift. They agreed to prevent Russia's central bank from using its international reserves in ways that could undermine sanctions.