Ukraine’s government breaks down how it spent $54 million in crypto
The beleaguered Ukrainian government is spending $54 million in cryptocurrency donations on military and medical supplies, according to a senior minister.
“With $54M raised by @_AidForUkraine, we have provided our defenders with military equipment, armored clothing, medicines and even vehicles,” Deputy Prime Minister of Ukraine and Minister of Digital Transformation of Ukraine Mykhailo Fedorov so on Twitter. “Thanks to the crypto community for support since the start of the full-scale invasion!”
Ukraine shows expenditure distribution
Ukraine spent the highest amount, $11.8 million, on unmanned aerial vehicles (UAVs), according to a breakdown of spending.
Armored vests came in second with $6.9 million. Subsequently, $5.7 million, $5.2 million, and $5 million were spent on hardware and software, the government’s anti-war media campaign, and weapons requested by the Department of Defense, respectively.
While the breakdown included quantities purchased for most items, the latter three were not disclosed for security reasons.
The donations have been facilitated by Aid For Ukraine, an initiative launched by Everstake, the Ministry of Digital Transformation of Ukraine and FTX.
The US cryptocurrency exchange has supported the effort by converting the crypto donations into fiat and sending the donations to the National Bank of Ukraine.
In March, Ukrainian President Volodymyr Zelenskyy signed a bill on virtual assets to legalize cryptocurrencies in a country that has received millions in crypto donations for military and humanitarian aid in the war against Russia.
The government had previously managed to sell off non-fungible tokens that had been donated to the war effort.
Japan shuts down Russian crypto mine
Meanwhile, the consequences of invading Ukraine continue to mount for Russia, with sanctions further compromising the country’s global economic integration. For example, Japan’s largest online brokerage, SBI Holdings, announced it would shut down crypto mining operations in Russia, fearing retaliation for skirting sanctions.
CFO Hideyuki Katsuchi announced plans to wind down the crypto mining rig earlier this week.
After China’s ban on cryptocurrency mining last year, most miners flocked to Russia, after the United States, to harness low-cost power from natural gas and hydroelectric dams.
However, after sanctions against Russian companies were first imposed following the invasion earlier this year, the US Treasury Department charged Swiss-based crypto mining company BitRiver over its operations in Russia.
Shortly thereafter, Compass Mining relieved itself of $30 million worth of hardware that had been operating in Siberia.
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