Ukraine, which has vigorously defended itself against the Russian invasion, says it has pioneered a new source of financial support: People around the world who have donated millions of dollars directly to its war effort through cryptocurrencies such as bitcoin. Since February 26, when Ukrainian officials began posting on Twitter calls for cryptocurrency donations, the Ukrainian government says it has received nearly $ 67 million from the $ 200 million target since Saturday. “Today, cryptocurrencies play an important role in Ukraine’s defense,” Alex Bornyakov, the country’s deputy minister of digital transformation, wrote on the country’s donation site. GET FOX BUSINESS IN ENGINE BY CLICKING HERE Ukraine has spent about $ 34 million of the funds it received last week, converting about 80 percent into traditional currencies and using the rest with traders already accepting cryptocurrencies, Bornyakov said in response to questions emailed. ARCHIVE – Members of Congress applaud Ukrainian President Volodymyr Zelensky before addressing a keynote address to Congress at the US Capitol Visitor Center in Washington, D.C. (Sarahbeth Maney / The New York Times via Sarahbeth Maney) AP, Pool, File) / AP Newsroom) The funds raised in cryptocurrencies are only a small part of the total donations received by Ukraine. After raising up to $ 12 million on March 2, cryptocurrency donations have fallen, although amplifiers say the unexpected initial increase may inspire other efforts to raise cryptocurrencies for humanitarian or defense purposes. Officials say the speed with which they can use their cryptocurrency donations has made them useful. The downside of this convenience, of course, is that cryptocurrencies continue to be a scam for fraud and the currency of choice for criminal networks. On Tuesday, European Central Bank chief Christine Lagarde warned that cryptocurrencies were “being used as a way to try to circumvent sanctions” against Russia, but did not elaborate on the fact that global ruble transfers abruptly in volume. Michael Chobanian, the founder of a Ukrainian cryptocurrency exchange, is one of many people helping the Ukrainian government manage donations through an informal deal, Bornyakov confirmed. “We buy so many things that save lives every day and also stop aggression, so it’s the beginning of a new world,” Chobanian said in a voice message sent via the Telegram app. Chobanian said he was not being paid for his work, but acknowledged that some of the funds were being converted through the Kuna cryptocurrency exchange. RUSSIA INVASES UKRAINE: LIVE UPDATES “It’s definitely the first,” said Bennett Tomlin, who investigates cryptocurrency fraud and hosts the Crypto Critic’s Corner podcast. “We have never seen a sovereign nation fund its defense efforts on cryptocurrencies. This proves many of the arguments for cryptocurrencies.” Bitcoins are shown in this image. REUTERS / Dado Ruvic / Illustration (REUTERS / Dado Ruvic / Illustration / Reuters Photos) This argument is that cryptocurrencies allow unlimited sending and receiving of value across borders through networks that cannot be easily censored or shut down because there is no single entity responsible. Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online. CLICK HERE FOR FOX BUSINESS CRYPTONE PRICE DETAILS IN REAL TIME Donations to Ukraine are a kind of test of endurance for these claims, some of which have done better than others. For example, services such as cryptocurrency exchanges act as custodians in part because many are required to collect personally identifiable information about the people who use their services. Two major cryptocurrency exchanges, Binance and CoinBase, have taken action to restrict the use of some of their services in Russia earlier this month, although they have not been fully withdrawn. Publicity surrounding Ukraine’s call for donations has also attracted fraudsters who have sought to take advantage of donors’ goodwill. Hilary Allen, a law professor at American University who has written a book on the dangers of cryptocurrencies to financial systems, said anyone donating should carefully consider all the factors involved. “Who gets the encryption? Who will convert the encryption? You have to think of them in the same way you would think of any other charitable or non-profit organization you donate to, because they are intermediaries in the same way.” said Allen. Many of the donations to Ukraine’s accounts are verifiable on public instruments that monitor cryptocurrency transactions – as well as transfers from accounts controlled by Ukraine. Tuan Phan, a cyber security professional who specializes in blockchain forensics, looked at the flow of money to and from some Ukrainian accounts, in part because he wanted to make a donation himself. Born in Vietnam, he said he was eight years old when communist forces in North Vietnam occupied Saigon in 1975. “I’m old enough to remember what happened, so I’m very empathetic with the Ukrainians,” Phan said. “I wanted to make sure that the address where I send my donation is in the right places. There are a lot of scams, so you have to be very careful.” Another challenge with accepting cryptocurrency donations is the ability of people to send contaminated property acquired through crime or fraud, said Ukrainian cryptocurrency lawyer Artem Afian. BLACKROCK FINK SAYS RUSSIA-UKRAINE CRISIS MAY STRENGTHEN DIGITAL CURRENCIES Even though some of the donated funds were obtained through illegal activity, he said, “I think comparing the risks and benefits for Ukraine now – Ukraine uses every penny, every opportunity to support the people, to support the army, so “This is not a time for Ukraine to choose too much.” An illustration of various cryptocurrencies. (Photo Illustration by Chesnot / Getty Images) (Photo Illustration by Chesnot / Getty Images / Getty Images) Overall, cryptocurrency donations so far account for about 1% of Ukraine’s annual pre-war defense budget, according to a report by the Congressional Research Service, which was updated in January. The Ukrainian government also receives assistance through many other channels, although not all of them flow directly to the government. Congress has pledged $ 13.6 billion to Ukraine, and President Joe Biden has pledged $ 800 million in additional military aid following a speech by Ukrainian President Volodymyr Zelensky to US lawmakers last week. The United Nations has raised about $ 618 million for Ukraine from its $ 1.1 billion target, as well as another $ 550 million to support refugees. The European Union has committed € 500 million to the humanitarian response as well as additional funding to support Ukraine’s budget. CLICK HERE TO READ MORE ABOUT FOX BUSINESS Last week, Zelenskyy signed a cryptocurrency regulatory framework into law, which Bornyakov said addresses a previously gray area within the country’s laws. Afian, a Ukrainian lawyer, was involved in drafting the law, arguing that Ukraine was on track to become more hospitable to cryptocurrencies. Donations so far, he added, can “make governments see that working with encryption can be formal and transparent and well-functioning.”
