The Ukrainian counterintelligence and law enforcement agency was able to seize the cryptocurrency wallet used to support the Russian military campaign in the nation.
Officials in Kiev assert that the funds received through the wallet were used to purchase military weapons for pro-Russian separatist fighters in the east.
The Security Service of Ukraine (SBU) has created for the first time a mechanism to limit cryptocurrency-based fundraising for the forces fighting on the Russian side in the continuing conflicts in Ukraine.
Late in February, the Russian army crossed the Ukrainian border in what Moscow describes as a "special military operation" in support of the pro-Russian separatist areas of Luhansk and Donetsk. This marked the escalation of the conflict into a full-scale war.
The SBU reported in a press release on Tuesday that a crypto wallet operated by a Russian Federation citizen and used to fund Russia's military activity in Ukraine has been blocked.
Since the beginning of the invasion, the individual, who presented himself as a volunteer, has been collecting funds for the needs of the Russian military.
The wallet had gathered digital currency worth 800,000 hryvnia (about $22,000 at the time), according to the SBU, which added that the monies have subsequently been seized.
Now, specialists are tracing the associated transactions and transferring possession to Ukraine. The government did not detail how the wallet was seized, but it did disclose that it received assistance from overseas crypto businesses.
Ukrainian authorities have determined that a substantial percentage of the donated cryptocurrency was used to purchase military supplies for separatist rebels in the self-proclaimed Luhansk and Donetsk People's Republic.
Additionally, representatives of the Ukrainian National Police and the Prosecutor General's Office participated in the operation.
Since the most recent phase of the conflict began, the Russian activist has been actively soliciting financial aid via social media sites.
The SBU noted, without revealing the Russian's name, that he created and routinely posted photo and video content, circulated posts written by associates, and reported on the usage of the gathered monies.
In a research released last month, the blockchain forensics company Chainalysis revealed that 54 pro-Russian organizations have collectively collected over $2.2 million in cryptocurrencies.
These groups, based in Donetsk and Lugansk, received the majority of their donations in bitcoin (BTC) and ether (ETH), as well as other cryptocurrencies.
