A resident from Yakutia has been sentenced by a Russian court to seven years in prison for funding the Ukrainian Armed Forces. This is the first case involving the use of cryptocurrency to finance an opposing military organization addressed by a Russian court.
Case Circumstances
According to media reports, the convict is being held in a high-security facility for providing financial support to the UAF. He was discovered through a social media group where he received instructions to transfer funds via a crypto wallet to support the Ukrainian armed forces.
Charges and Accountability
A criminal case was opened under Article 275 of the Russian Criminal Code, accusing the man of high treason by providing financial assistance to a foreign organization threatening Russia's security. The FSB Directorate for the Republic of Sakha conducted the investigation accordingly.
UAF Funding and Cryptocurrency in Ukraine
Since the 2022 conflict, Ukraine has received millions in cryptocurrency donations. By 2024, decentralized finance transactions topped $10 million. Ukraine plans to legalize cryptocurrencies in 2025 with taxation upon conversion to traditional currency. The government aims to counter Russia's Bitcoin use for sanction evasion.
This case sets a significant precedent in the legal handling of cryptocurrency use in Russia and underscores the relevance of regulating decentralized finance.
