<a href="https://www.cryptoknowmics.com/news/russian-government-and-the-central-bank-reached-an-agreement-to-treat-bitcoin-as-a-currency/" target="_blank" rel="noopener">Russia</a> has long opposed Ukraine's move toward European institutions, particularly Nato. Its main demand is for the West to guarantee that <a href="https://www.cryptoknowmics.com/news/ukraine-the-most-crypto-aware-country-after-russia-and-us-survey/" target="_blank" rel="noopener">Ukraine</a> will not join Nato, a 30-nation defensive alliance. Ukraine has borders with both the EU and Russia, but as a former Soviet republic, it has strong social and cultural ties to Russia, and Russian is widely spoken. As Russia has previously invaded Ukraine, the threat is taken seriously. Now, with the conflict between the two nations rising, <a href="https://www.cryptoknowmics.com/news/us-sec-working-with-cftc-on-crypto-regulation-says-gensler/" target="_blank" rel="noopener">crypto</a> donations have also started to soar. 

According to a survey by blockchain analytics firm Elliptic, Bitcoin donations to Ukrainian civil activists and volunteers increased by 900% from the previous year to more than $570,000 in 2021. The organizations in question arose following the 2014 Maidan revolution, which saw pro-Russian President Victor Yanukovich overthrown. Following that, Russia attacked and annexed the Crimean peninsula, igniting a civil war in Ukraine's east. Volunteer organizations began assisting Ukrainian military forces and striking pro-Russian insurgents at that time.
<h2>Bitcoin Donations, In Particular, Have Increased</h2>
Both groups accept both fiat and crypto donations; however, <a href="https://www.cryptoknowmics.com/news/series-on-bitfinex-hack-of-119k-bitcoin-coming-to-netflix/" target="_blank" rel="noopener">Bitcoin</a> donations have surged dramatically in the last year, according to Elliptic, because the crypto allows overseas contributors to bypass financial institutions that have barred payments to these organizations. For example, since August 2021, the Bitcoin wallet of Come Back Alive, a non-governmental organization (NGO) soliciting cash to aid the Ukrainian army, has raised around 3.8 BTC, including a few donations of 1 or 2 BTC.

According to the Elliptic research, Ukrainian groups are replicating Russian tactics used since the start of the war, when Russia launched online fundraising efforts for pro-Russian separatists in Eastern Ukraine, often utilizing cryptocurrencies. Crypto donations still make up a small percentage of total donations on both sides of the battle, according to the research, but "cryptocurrency has proven to be a solid and increasingly popular alternative."

Elliptic reported that the hacktivist group Ukrainian Cyber Alliance, which targets pro-Russian fighters in Donbass' eastern sector, raised roughly $100,000 in Bitcoin, Ether, Litecoin, and numerous stablecoins during the past year.

Mirotvorets, a website that publishes the names and personal data of Russians considered "enemies of Ukraine" by the project's founders, has received approximately 6.9 BTC at its bitcoin donations address since 2020. In 2016, the initiative sparked controversy when it published, among other things, a list of all journalists accredited by the separatist administration of the Donbass breakaway area, along with their contact information.
<h2>Crypto As a Medium to Raise Funds</h2>
<blockquote>"Some of the Ukrainian volunteer groups and NGOs taking crypto donations have extremely close ties to the Ukrainian government," according to the research, "and this adds to a pattern of nation-states turning to cryptocurrencies as a means of raising revenue." "Iran is suspected of stealing cryptocurrencies to fund its missile development program, while North Korea is suspected of using it to monetize its energy reserves."</blockquote>
In the last decade, local non-governmental organizations (NGOs) have begun to secure financial support to supplement the activities of soldiers and volunteers in the face of government corruption. When Ukraine's pro-Russian president, Viktor Yanukovych, was deposed in 2014, legions of volunteers stepped up to support demonstrators during the Maidan Revolution.

Private donors typically send funds to these NGOs through bank wire transfers or payment apps. Donors have been using cryptocurrencies in recent years to avoid banks and other entities that might limit payments to Ukraine. Although cryptocurrency donations to Ukraine are on the rise, they still account for a small portion of total funding. The vast majority of funds continue to enter Ukraine in fiat currencies via traditional payment systems.

Crypto Donations Soars As The Russia-Ukraine Conflict Intensifies

According to a survey, Bitcoin donations to Ukrainian civil activists and volunteers increased by 900% from the previous year to more than $570,000 in 2021.

Meghna is a graduate of the Indian Institute of Journalism &amp; New Media specializing in  Print Journalism. She is currently working as a content writer for Agio Support Solutions Pvt. Ltd. She aims to provide quality content and strategy in the field of cryptocurrency and work with digital marketing platforms to deliver brand-specific strategies.

Crypto Donations Soars As The Russia-Ukraine Conflict Intensifies

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