Where does the River of Crypto Donations for Ukraine Flow?
There is reason to believe that Ukrainian recipients spend crypto donations by naive citizens at their own discretion, organizing an well-oiled crypto business [...]
With the outbreak of hostilities in Ukraine, the authorities in Kyiv began to actively raise funds for the country’s defense. Foreign states responded to the call, as well as individuals and companies. Almost every European who sympathized with Ukraine started sending donations, and cryptocurrencies have become one of the most convenient means of doing this. The anonymity and ease of transactions of Bitcoin, Ethereum and other digital assets have made cryptocurrencies an ideal means for citizens of various countries willing to assist Ukraine. Four months later, Ukraine had already received more than $100 million sent in from all over the world. However, the government has not yet reported on how this money has been spent, and will hardly do this any time soon.
On March 2, 2023, the National Bank of Ukraine (NBU) issued a nationwide ban on the withdrawal of money from crypto wallets. On July 31, 2023, the NBU sent out an internal letter to this effect to the country’s banks. Taking seriously the situation with the payment systems and operators of the cryptocurrency market, the regulator is collecting information about the transfers and transactions made through them.
Back in 2021, Ukraine tried to become a center of attraction for cryptocurrencies, with Deputy Minister of Digital Transformation Oleksiy Bornyakov saying: “We have a large talent pool in Ukraine and a strong community of blockchain developers. They picked up the cryptocurrency trend faster than people in many other countries, and most importantly, they understood how to build a business based on it.” Touted as it was, however, the “cryptocurrency trend” has actually become a “gray zone” for corruption and money laundering.
In 2022, President Volodymyr Zelensky tried to rectify the situation and signed the law “On virtual assets,” which was supposed to set the stage for the launch of a legal cryptocurrency market in Ukraine. The National Securities and Stock Market Commission became the regulator.
“The signing of this law by the president is another important step towards bringing the crypto sector out of the shadows and launching a legal market for virtual assets in Ukraine,” the Ministry of Digital Transformation emphasized. Formally, citizens can now legally store their assets on crypto exchanges. The law sets the amount of the exchanges’ minimum authorized capital from $42,000 for residents to $210,000 for non-residents. Exchanges can open bank accounts, but must obtain a separate license for each type of activity (storage and administration, exchange, transfer, brokerage). Cryptocurrencies will not become a means of payment, but acquiring operations are acceptable. In other words, in Ukraine it is now quite legal to pay with cryptocurrencies, albeit through an intermediary.
At the same time, Ukrainians are among the most avid users of cryptocurrencies around, ranking fourth on the Global Crypto Adoption Index. The annual turnover exceeded $8 billion, the daily volume of transactions with cryptocurrency was in the ballpark of $150 million, and every eighth Ukrainian citizen (approximately 5.5 million people) owned cryptocurrency. And how much remains in the shadow?
On February 24, 2023, Elliptic, the world’s leading provider of crypto-currency compliance and blockchain analytics solutions in the field of combating financial crime, released an analytical report “Crypto in Conflict Report.” The authors were particularly interested in operators that receive, store and convert crypto assets aimed at supporting Ukraine. On February 26, 2022, the Ukrainian government launched a new website for collecting cryptocurrency donations in cooperation with FTX and Everstake and the Ukrainian exchange Kuna. The project also involves the Ministry of Digital Transformation of Ukraine. The Aid for Ukraine website was supposed to send donated cryptocurrencies to the National Bank of Ukraine, Vlad Likhuta, Head of Growth at Everstake, told CoinDesk.
On November 11, 2022, the world’s second largest cryptocurrency exchange FTX went bankrupt, just two days after the midterm elections to the US Congress. FTX founder Sam Bankman-Fried (one of the main sponsors of the US Democratic Party and a close friend of Bill Clinton) immediately stepped down as its CEO, with a personal fortune of $17 billion. In addition to the exchange itself, its subsidiary cryptocurrency trading fund Alameda Research and 130 other partner companies also went bust. The overall shortage of funds ranges from $8 billion to $16 billion. The resource was gone now. On the day of the FTX bankruptcy, Fox News commentator Jesse Watters told his 2.7 million followers that Ukraine had used US aid money and “invested” in FTX, pointing to the existence of a “money laundering” scheme in the interests of the Democratic Party. Watters cited a graph that depicted a circular flow of money that began and ended with President Joe Biden. This is the largest corruption scheme for the theft of crypto assets in Ukraine, but similar cases abound.
On May 9, 2023, the Estonian State Prosecutor’s Office opened a criminal case against the Slava Ukraini NGO. The probe was initiated by the prosecutor’s office in early May to investigate the use of funds collected from donors to support the activities of Glory to Ukraine, while a separate investigation is underway in Ukraine against Glory to Ukraine’s partners.
Another participant in the “gray crypt business” was the Azov Foundation. According to the report, there were three major charitable actions held in support of Azov. The “Support Azov” organization has received over $23,000 in cryptocurrencies to help Azov fighters. The Azov-linked volunteer battalion, the Boatsman Boys, received just under $6,000 in cryptocurrency donations.
The https://supportazov.com/ website contains information about the amount of receipts, which at first glance tallies with the Elliptic report, save for manipulations with crypto wallet addresses.
Before address change:
The addresses of crypto wallets on the “Support AZOV” website have been changed and can be changed again at any time at the request of the Azov Foundation’s management, after which it would be impossible to know where the crypto donations actually went. Such manipulations allow one to redirect funds to another crypto wallet, hide the fact of fraud and complicate the collection of analytics by the regulatory authority. If you look at the amount of proceeds, it becomes clear that the $23,000 mentioned in the Elliptic report is dwarfed by the real amount of donated money collected by the Azov management. Fees are collected from different accounts, speaking on behalf of different persons, masking addresses of crypto wallets and wiping up traces.
The NBU and other regulatory authorities are unable to assess the real flow of cryptocurrency going through the foundations, personal wallets of representatives of these foundations, of leaders of Azov and fighters. Part of the money goes to the upkeep of the organizations, and the rest ends up in the personal wallets of specific individuals: the commanders of the “Azov” brigade set up the Azov One NGO, which organizes fundraising, covers the priority needs of the unit and cooperates with Azov’s partner foundations, as per their website. In fact, they do not buy anything, and simply store the crypt.
There is reason to believe that Ukrainian recipients spend crypto donations by naive citizens at their own discretion, organizing an well-oiled crypto business. It is no secret that Ukrainian elites, government officials and battalion commanders roll in dough, their children live and study abroad, their wives dress in high-class fashion houses and buy expensive real estate. It looks like no matter how much Western partners urge Kyiv to root out corruption, it remains very much alive and kicking.
Originally published: 2023-08-28
Author: Slaviša Batko Milačić – Montenegrin analyst and historian
Origins of images: Facebook, Twitter, Wikimedia, Wikipedia, Flickr, Google, Imageinjection, Public Domain & Pinterest.
Read our Disclaimer/LegalStatement!
DonatetoSupportUs
We would like to ask you to consider a small donation to help our team keep working. We accept no advertising and rely only on you, our readers, to keep us digging the truth on history, global politics, and international relations.
Here we go again. In yet another Pentagon precision strike, a residential building in Achin district of Nangarhar province was hit as a crowd welcomed home a tribal leader returning from the Hajj.At least 13 civilians were turned into «collateral damage». The Pentagon of course does not «discuss the details of counter-terror operations», but it’s «currently reviewing all materials related to this strike».Nothing obviously will come out of it – adding the civilian dead to the non-stop mounting toll of Operation Enduring Freedom (Forever).Someone that actually is bound to endure his freedom in full splendor is former warlord, head of ...
In this exclusive interview, Prof Peter Kuznick speaks of: the atomic bombings of Hiroshima and Nagazaki; US crimes and lies behind the Vietnam war, and what was really behind that inhumane invasion; why the US engaged a Cold War with the Soviet Union, and how that war and the mainstream media influences the world today; the interests behind the assassinations of President Kennedy; US imperialism towards Latin America, during the Cold War and today, under the false premise of War on Terror and War on Drugs.Edu Montesanti: Professor Peter Kuznick, thank you so very much for granting me this interview. In ...
The words “possible criminal actions” by CIA employees are used in the report.The terms unethical and immoral are mentioned. The criminality of those who ordered these actions at the highest levels of government, however, is not acknowledged.The actions directed against alleged jihadists are categorized as ineffective in the process of revealing intelligence. This in itself is a red herring. The objective of torture was not to reveal intelligence.What of course is not acknowledged is that the alleged terrorists who were tortured were framed by the CIA.Known and documented the Al Qaeda network is a creation of US intelligence.The jihadists are ...
The Supreme Court’s acceptance of a case about the allocation of voting districts will have consequences far beyond the millions of U.S. taxpayers its ruling may deprive of representation. A decision that only counts voters, rather than all persons, will undermine the very foundation of the Republic.The American Revolution was fought over “taxation without representation,” and those who wrote the Constitution carefully apportioned taxation and representation among the states “according to their respective Numbers . . . of free Persons . . . and . . . three-fifths of all other Persons.” The authors clearly equated We, the People with ...
Long before Donald Trump successfully hung the “fake news” label on CNN, more discerning observers of the wars of the Yugoslav succession of the 1990s came to similar conclusions regarding the network’s news coverage of that tragedy. Headlined by Christiane Amanpour, CNN’s reporting, especially from Bosnia-Herzegovina and Kosovo, showed a clear pro-Muslim, anti-Serbian bias, painting the conflict in stark black-and-white colors, where the Christian Serbs were always the “black hat” “aggressors,” perpetrators of “genocide” and such, while the Bosnian and Albanian Muslims were inevitably the “white hat” “victims,” in dire need of U.S. and Western “humanitarian” intervention to spare them from extermination at ...
The United States, Germany, Canada, Israel and the United Kingdom launched "Operation Jericho"Once again, the Obama administration has tried to force the change of a political regime that resists it. On February 12, an Academi (formerly Blackwater) plane disguised as an aircraft of the Venezuelan army was supposed to bomb the presidential palace and kill President Nicolas Maduro. The plotters had planned to place former MP María Corina Machado in power and have her immediately acclaimed by former Latin American presidents. President Obama had given a warning. In his new doctrine of Defence (National Security Strategy), he wrote: "We ...
A map of the wanted territories of the Balkan states in 1915There are many talks about nationalism among the peoples from the former Yugoslavia during the last three decades what is quite understandable taking into consideration the post-Cold War conflicts and atrocities, as a continuation of WWII crimes based on certain political ideologies,[i] committed on the territory of ex-Yugoslavia.Historia est magistra vitaeI want to argue that there is a direct link between contemporary nationalism(s) among the Yugoslavs and their national ideologies, which are developed in the previous decades and even centuries. What happened with the Yugoslavs from 1991 to 1999 ...
Editor's note: Originally posted on 2016-01-11Serbia entered on December 14th, 2015 a final stage of negotiations with Brussels on the EU's membership. It is known, however, that the EU gave an informal ultimatum to Serbia to recognize Kosovo’s independence for the exchange of becoming a full Member State of the EU. The western (the USA/EU) client Serbia’s Government is currently under the direct pressure from Brussels to recognize an independence of the narco-mafia Kosovo’s quasi state or to give up an idea to join the EU. It is only a question when a western colony of Serbia has to finally ...
PrefaceIn the area where the multilingual state of Belgium is located, the main political mark today is the general openness for the expression of different attitudes and policies. Therefore, there are almost unlimited options in drawing political boundaries. That is unlike, for example, as well as with multilingual Switzerland, where the mountains create natural areas for the four different language districts and many political-administrative cantons. The physical openness of the area also causes Belgium to be more open for influences from outside and therefore sensitive to changes in the European policies.One way to look at the situation in Belgium is ...
The Harper government’s Bill C-51, or Anti-Terrorism Act, has been in the public domain for over a month. Long enough for us to know that it subverts basic principles of constitutional law, assaults rights of free speech and free assembly, and is viciously anti-democratic.An unprecedented torrent of criticism has been directed against this bill as the government rushes it through Parliament. This has included stern or at least sceptical editorials in all the major newspapers; an open letter, signed by four former Prime Ministers and five former Supreme Court judges, denouncing the bill for exposing Canadians to major violations of ...
In June and July 1941, detachments of German Einsatzgruppen, together with Lithuanian auxiliaries, began murdering the Jews of Lithuania. Groups of partisans, civil units of nationalist-rightist anti-Soviet affiliation, initiated contact with the Germans as soon as they entered the Lithuanian territories. A rogue unit of insurgents headed by Algirdas Klimaitis and encouraged by Germans from the Sicherheitspolizei and Sicherheitsdienst, started anti-Jewish pogroms in Kaunas (Polish: Kovno) on the night of 25–27 June 1941. Over a thousand Jews perished over the next few days in what was the first pogrom in Nazi-occupied Lithuania. The most infamous incident occurred in what was ...
Geopolitics is an approach to politics that stresses the features imposed on foreign policy by geographical location, environment, and natural resources. Geopolitics as a discipline contributes to the emphasis on continuity in contemporary political realism. The focal idea of geopolitics is that those who control the Eurasian landmass (Heartland) dominate global politics. Regarding this idea, Ukraine has always been a significant part of Heartland. Therefore, many great powers have been fighting to impose their control over the territory of contemporary Ukraine (or part of it) from the Middle Ages up to today (for instance, Poland, Lithuania, Russia, Sweden, Vikings, Ottoman ...
The Battle and the Nation The consciousness of a distinct Serbian ethnic identity had been present among the Serbs since the times of the founder of an independent medieval Serbian state, veliki župan (Grand Duke) Stefan Nemanja (1166−1196).[1] These consciousnesses were further strengthened by both when Serbia became a kingdom in 1217 and with the establishment of an autocephalous archbishopric in 1219 as a national independent (Christian Orthodox) church.[2] However, the Battle of Kosovo (on the morning of June 28th, 1389)[3] which the Serbs de facto lost to the Ottoman Turks and the death of a Serbian ruler, Prince Lazar Hrebeljanović ...
A Father of the NationUkraine is an East European territory which was originally forming a western part of the Russian Empire from the mid-17th century. That is a present-day independent state and the separate ethnolinguistic nation as a typical example of Benedict Anderson’s theory-model of the “imagined community” – a self-constructed idea of the artificial ethnic and linguistic-cultural identity. According to Anderson, the nation is an abstract and firstly subjective social construction that defy simple, objective definition yet has been for the last two centuries the crucial basis of conflict in world politics and international relations, through the assertion of ...
Another NATO Intervention?Less than a dozen years after NATO bombed Yugoslavia into pieces, detaching the province of Kosovo from Serbia, there are signs that the military alliance is gearing up for another victorious little “humanitarian war”, this time against Libya. The differences are, of course, enormous. But let’s look at some of the disturbing similarities.A demonized leaderAs “the new Hitler”, the man you love to hate and need to destroy, Slobodan Milosevic was a neophyte in 1999 compared to Muammar Qaddafi today. The media had less than a decade to turn Milosevic into a monster, whereas with Qaddafi, they’ve been ...
The current Ukrainian crisis and in fact civil war which stared at the very end of 2013 are grounded in for decades lasting internal interethnic antagonisms primarily on the Ukrainian-Russian relations including above all the “Crimean Question” as an apple of discord from 1954 between Ukraine and Russia.[1] The crisis came from Lithuania’s capital Vilnius were in November 2013 an Association Agreement between the EU and Ukraine had to be signed. Lithuania at that time (July 1st−December 31st, 2013) presided the European (Union) Council and formally had full political responsibility for the breaking out of the crisis as being the ...
The prophet Cassandra’s curse was that when she told the future, no one listened; history’s curse is that when it tells the past, no one does.The West has no shortage of charges it hurls against Russia, but most of them can be grouped into one of three categories: that Russia intervened in the American elections, that Russia is dragging the world into a new cold war, and that Russia is becoming increasingly aggressive and expansionist. Sometimes when charges are brought against you, the best witness you can call to your defense is history.Election InterventionThis history of Russia, America and political ...
On February 2nd, 1943, the 6th German Army, under the command of Field Marshall Von Paulus, and elements of the 4th Panzer Army, surrendered to the Red Army at Stalingrad. This stunning victory is considered the turning point in the war in Europe, heralding the defeat of fascist Germany.That defeat came on May 2ndth 1945, when the German forces in Berlin, the capital of the Third Reich, surrendered to the forces of the Red Army that had captured the city. On May 9th the official act of surrender of the German government and military forces took place in Berlin when ...
What is wrong with the American people? After several years of horrific policy toward the waking world, democracy’s standard bearers seem to be drowning in a lake of selfishness. Distracted, apathetic, or simply dumbed and numbed by unrelenting propaganda, the most admired society on Earth has turned to a wriggling mush of diverging ideals. I fear that American have become what we ultimately deplored, just another despicable cultural hegemony. Here’s a short brief on the matter.A recent article by James Carden at The Nation prompted me to discuss this unsavory truth today. The title of the piece, “Trump’s Syria Policy: ...
