Russian Paramilitary Groups Turn to Crypto Avoiding Sanctions

• $400,000 have been raised since the beginning of the invasion in February.
• The entity bought things like survival gear and ordinary military gear.

According to an analysis by blockchain intelligence company TRM Labs, pro-Russian organizations are using crowdfunding campaigns. In order to raise a substantial quantity of Bitcoin and other cryptocurrencies. Aiming to dodge U.S. sanctions and finance paramilitary activities in war-torn Ukraine.

Chris Janczewski, director of worldwide investigations at TRM Labs, told CNBC that “as of last week, we identified about $400,000 that have been raised since the beginning of the invasion in February.”

Fundraised For Buying Equipments

According to Janczewski, one of these organizations is “Task Force Rusich.” Which is defined as a “neo-Nazi paramilitary group that has participated in combat alongside Russia’s military in Ukraine” by the United States Treasury’s Office of Foreign Assets Control (OFAC).

The Office of Foreign Assets Control (OFAC) this month sanctioned the so-called “Task Force Rusich.” Also two of its commanders. And five crypto addresses connected to the organization for their alleged involvement in horrific crimes against Ukrainians. TRM Labs learned that the organization was trying to fundraise in order to purchase radios and thermal imaging cameras.

Romanov Light, a Telegram channel, is highlighted in the article for raising approximately $174,000 in cryptocurrency. This is for the Special Rapid Response Unit (“SOBR”) of the Russian military. The entity bought things like survival gear and ordinary military gear.

According to the report, “The Novorossia Aid Coordinating Center,” another pro-Russian organization, collected roughly $21,000 (mostly in Bitcoin) to purchase drones using cryptocurrency.

Since sanctions and service problems to the Russian electronic banking system have been detected, TRM Labs has projected that cryptocurrency adoption among Telegram channels that solicit donations in favor of Russia’s invasion of Ukraine would likely increase.

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