See More

Ukraine Government Offering Bounty for Info Leading to Russian Politician Wallet Addresses

3 mins
Updated by Nanok Bie
Join our Trading Community on Telegram

In Brief

  • Ukraine breaks ground in offering crypto for Russian politicians' crypto wallet addresses.
  • Over 500 tips have been received so far, according to legal counsel for Ukraine's minister.
  • Crypto is proving to be an effective weapon against the Kremlin's invasion of Ukraine so far.
  • promo

The Ukraine government is offering a bounty for anyone with actionable information on the crypto wallet addresses of Russian politicians.

Ukraine’s Minister of Digital Transformation Mykhailo Fedorov called for tip-offs on addresses of crypto wallets belonging to Russian politicians and for action against “war crimes” in a tweet.

“War crimes must be pursued and punished!” he tweeted, referring to Russia’s recent attack on Ukraine.

The tips will be rewarded with a bounty, paid in crypto, subject to the discretion of the politician’s office. The funds will come from private crypto donations in ETH, Bitcoin, and other cryptocurrencies, contributed by the Ukrainian crypto community.

The minister has appointed a lawyer, Artem Afian, to spearhead the tipoff initiative. As of this time, Afian has received 500 tips, and expects to announce a list of politicians’ addresses in the next few days to share with leading global exchanges.

The government’s objective in creating this program is for politicians’ addresses to be marked as “toxic” to disincentivize transactions involving these individuals, ultimately blacklisting them from leading exchanges.

“We want them to understand that they are not welcome in Ukraine or crypto,” Afian said.

The addresses will be shared with crypto analytics firm, Chainalysis, Afian said. In a Twitter thread, Chainalysis stated that it is not likely that sanctioned individuals would move large volumes of crypto now. It is nevertheless “monitoring for on-chain indicators of crypto-based sanctions evasion by Russian actors.”

Could crypto bounties be weaponized?

The ongoing conflict in Ukraine is opening up the crypto space to the complexities of geopolitical sanctions as it relates to Russia’s conduct.

It could be a good learning opportunity for global regulators, so they can craft the appropriate rules necessary to compel crypto exchanges doing business with sanctioned nations (and/or individuals) to blacklist and publicize their wallet addresses in the interest of national security.

Governments could also create their own bounty programs from crypto seized following cryptocurrency criminal arrests, encouraging citizens to come forward with actionable information on criminals using the blockchain.

We have already seen P2P platforms like Uniswap, compelled by the Bank Secrecy Act to perform sanctions checks. The Financial Crimes Enforcement Network’s BSA regulations define a “money transmitter” as a person engaged in the business of providing money transmission services or any other person engaged as a business in the transfer of funds, according to Mondaq. This seems to bring DeFi within the ambit of FinCEN’s jurisdiction.

Centralized exchanges also fall under FinCEN’s BSA based on the same premise, as seen in a recent Congressional hearing with FTX CEO Sam Bankman-Fried.

In the hearing, Bankman-Fried said that FTX performs sanctions checks on anyone that signs up to their platform, ensuring that individuals prohibited by international sanctions cannot trade.

Crypto wielded as a weapon on two fronts

The awarding of crypto to tippers with actionable information shows that Ukraine is pioneering wielding crypto on two fronts, since the appeal for politicians’ addresses is an offensive play to squeeze Russian politicians.

On the other hand, the country has solicited donations in bitcoin, ETH, and Tether via its official Twitter account, and reports suggest that upwards of $9 million has been raised.

Both initiatives demonstrate how crypto can seamlessly traverse international borders, both for welfare and to fund political and military campaigns.

What do you think about this subject? Write to us and tell us!

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

David-Thomas.jpg
David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
READ FULL BIO
Sponsored
Sponsored