Russia is reportedly exploiting cryptography to evade sanctions, according to the EU. Christine Lagarde, President of the European Central Bank, has called cryptocurrency an “accomplice” in helping Russia dodge sanctions. Since Vladimir Putin’s invasion began, the besieged Ukrainian government has received $100 million in bitcoin (BTC-USD) and stablecoin.
Russia is reportedly exploiting cryptography to evade sanctions, according to the EU
According to the EU, Russia is allegedly using encryption to avoid sanctions. Christine Lagarde, the President of the European Central Bank, has dubbed crypto an “accomplice” in helping Russia avoid sanctions. Since Vladimir Putin’s invasion began, however, 100 million dollars in bitcoin (BTC-USD) and stablecoins have been contributed to the besieged Ukrainian government. As of Wednesday, Bitcoin is worth $42,074.
“They are undoubtedly being used as a tool to try to avoid the sanctions that have been decided by many nations across the world against Russia,” the ECB chairman said at the gathering.
On Tuesday, Lagarde spoke at the Bank of International Settlements’ Innovation Summit, warning that cryptocurrencies are a source of concern and that they “remain a menace.” Since Putin invaded Ukraine, it has been alleged that millions of Russian rubles have been invested in bitcoin and stablecoins.
“A certain number of players, whether individuals or corporations are certainly attempting to convert their rubles into crypto assets,” Lagarde said. There was an increase in transfers from rubles to stablecoins, as well as transfers from stablecoins to other digital assets. The development follows the government of Ukraine’s recent decision to legalize bitcoin and the establishment of an official cryptocurrency donation wallet.
Ukraine’s formal recognition of cryptocurrencies was not discussed at the summit. Crypto contributions have raised more than $100 million for the country’s military efforts.
Tether (USDT-USD) and bitcoin have been the most common cryptocurrencies used to make donations so far. The cryptocurrency donations went toward purchasing protective jackets, food, medicine, helmets, and optics, according to Ukraine’s digital ministry.
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