As a researcher examining this case, I’ve come across an interesting development: A resident of Yakutia, Russia, was recently handed a seven-year prison sentence due to providing financial support to the Ukrainian Armed Forces. The means through which this support was delivered? Cryptocurrencies, transferred directly to their account.
As reported by the Russian news outlet Izvestia, the individual is currently detained in a top-security detention center for allegedly offering financial support to the Ukrainian Armed Forces (AFU). This is believed to be the first known court verdict in Russia where cryptocurrency was used to fund a military adversary.
An investigation has begun on charges under Article 275 of the Russian Criminal Code for an individual born in 1988, as announced by the FSB Directorate in the Republic of Sakha.
The individual has been accused of committing “severe betrayal” by giving monetary support to a foreign nation or global entity, an act that threatens the safety of the Russian administration.
The individual’s true identity hasn’t been disclosed yet, but he is believed to be a native of the Sakha Republic, or Yakutia, and employed at a diamond mining firm. As reported in a press conference by the FSB Directorate, this person was linked with members of the Ukrainian military through a social media group.
Via the given group, he was shown how to move cryptocurrency from his digital wallet to assist in financing an organization labeled as a “terrorist entity” by the Russian Federation.
Due to Russia’s invasion of Ukraine in 2022, Ukraine has been receiving large amounts of donations, primarily in the form of cryptocurrency. In fact, throughout 2024, Ukraine saw a significant surge – over 362% increase – in decentralized finance transactions that surpassed $10 million by October.
It was revealed last December that Ukraine plans to make cryptocurrency legal in early 2025. This proposed law, though, classifies digital currencies similar to securities, which means they will be taxed when exchanged for traditional money. The government has stated that it won’t provide any tax breaks to avoid misuse and is still working with experts and the IMF on this issue.
Furthermore, the Ukrainian government is considering imposing restrictions on Russia’s usage of Bitcoin (BTC) for international transactions, following the announcement by Russia’s finance minister that they have been utilizing cryptocurrencies as a means to bypass Western financial sanctions.
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2025-01-15 13:32