Russian Citizen Sentenced to 7 Years for Funding Ukrainian Armed Forces with Cryptocurrencies
A Russian citizen from Yakutia, also known as the Sakha Republic, has been sentenced to seven years in prison for providing financial assistance to the Ukrainian Armed Forces through cryptocurrency transactions.
According to a recent press statement, the Federal Security Service (FSB) Directorate for the Republic of Sakha opened a criminal case under Article 275 of the Criminal Code of the Russian Federation against the man, who was born in 1988. He has been charged with βhigh treason in the form of providing financial assistance to a foreign state, international or foreign organization,β which is deemed a threat to the security of the Russian government.
Case Details and Charges
The manβs identity remains unknown, but it is reported that he works at a diamond mining company. He allegedly joined a social media group that connected him to members of the Ukrainian armed forces, through which he received instructions on how to transfer funds using a crypto wallet to support the Ukrainian Armed Forces, which Russia considers a βterrorist organization.β
Cryptocurrency Adoption and Ukraine
Since Russiaβs invasion of Ukraine in 2022, Ukraine has received millions of dollars in cryptocurrency donations. In 2024, Ukraine recorded a significant increase of over 362% in decentralized finance transactions exceeding $10 million by October.
Recently, Ukraine announced plans to legalize cryptocurrency in early 2025, with a proposed law that would treat cryptocurrencies like securities, subject to taxation once converted into traditional currency. The government has stated that it will not employ tax exemptions to prevent misuse, as it continues to consult with experts and the International Monetary Fund (IMF) on the matter.
Sanctions on Russiaβs Use of Bitcoin
The Ukrainian government has also expressed its intention to sanction Russiaβs use of Bitcoin for international payments, following Russiaβs finance ministerβs declaration that the nation has been using cryptocurrency to circumvent Western sanctions.
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