The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

Ukraine uses crypto to purchase bulletproof jackets and night-vision eyewear

6 min reading

According to the Ukrainian government, some of Ukraine's military providers have crypto accounts.

On Monday a senior official said that some of Ukraine's arms suppliers are accepting crypto payments instantly.

After Russia conquered the European country at the end of February, Ukraine "weaponized" cryptocurrency, collecting over $60 million in Bitcoin (BTC), Ether (ETH), and other cryptocurrencies and spent some of the money on fuel, food, and other supplies including bulletproof jackets for the military.

According to Alex Bornyakov, deputy minister at Ukraine's de facto crypto ministry, the Ministry of Digital Transformation, the country's de facto crypto ministry, is expediting the purchase of military weapons depending on the requirements of the Ministry of Defense. Kuna, the Ukrainian exchange that posted the donation addresses, two ministries, five signatories, and some additional government officials are all significant participants in the plan.

Bornyakov is the Minister of Digital Transformation and Vice Prime Minister Mykhailo Fedorov's deputy. He said he was not in Kyiv, the country's capital, but did not elaborate.

Any expenditure of Ukraine's crypto funds must be approved by at least three of the five authorized signatories. The procedure was set in place to prevent signatories from becoming trapped in shelters or being cut off from the outside world.

Bornyakov said, “Most of the people are in Ukraine. And it is a terrible situation right now. The war zone is in different parts of Ukraine. It is possible that people could be in a shelter or they can lose connection for days and so we have to have a redundancy plan just in case someone can’t be in touch.” 

The ministry has formed a public-private partnership with Ukraine's Kuna exchange, which already has facilities in a position to receive funds and trade on behalf of the government.

Some of Ukraine's suppliers are also keen to take cryptocurrency payments directly, which benefits the country.

“Some of the military suppliers have accounts in crypto. Actually, some of them have companies and bank accounts in jurisdictions where cryptos are allowed. And they can just get crypto in ethereum, bitcoin and, of course, in some stablecoins,” Bornyakov said.

Crypto has proven to be a more versatile and cost-effective solution for Bornyakov than traditional bank transfers.

“It is easier, not complicated, transparent, and faster in comparison to a SWIFT transaction, which could take more than a day,” he said

Ukraine utilizes a multisignature wallet to keep track of the cryptocurrencies it receives, according to Bornyakov.

He added, “I cannot say who controls the multi-sig wallet since it is a security matter.” Bornyakov explained, “We moved to a safe location because it is impossible. A couple of times a day there are airstrikes, sirens, so we have to go in the shelter, the bombings, it’s complicated.” 

Although Bornyakov refused to name any particular individuals participating in the process, authorities inside Ukraine's Ministry of Defense select how the crypto donations will be allocated.

“It’s not just one person who decides. Three people have to sign out of the five authorized signatories, and so who makes the decision doesn’t really matter,” Bornyakov said.

President Volodymyr Zelenskyy of Ukraine, who has become a unifying symbol for the nation, does not appear to be engaged in the acquisitions.

“We don’t speak to him directly. There is a big structure and there are people who are making that decision. I don’t know. They are more like a black box to me. I know people who were appointed and who said you have to deal with this guy,” Bornyakov said, denying to say who “the guy” was.

Ukraine has not released a detailed list of where the crypto donations are heading for "security purposes," but Bornyakov has committed to do this in the future.

Bornyakov explained, "Right now we can't just put a list of what we bought because the enemy is watching."

The crypto fund, according to Bornyakov, is used to acquire non-lethal military gear including bulletproof jackets, night-vision spectacles, military-grade food and supplies, and medical equipment that aids in hemostasis like splints.

Ukraine's crypto fund has collected $60 million, while the country's central bank has garnered between $280 and $300 million in fiat money donations from private entities.

Despite collecting millions of dollars in crypto to combat Russia, Ukraine has urged crypto exchanges to restrict anyone from the enemy country from using the same operations.

Ukraine's government has requested that Russian accounts be frozen at eight different exchanges. Only a few have answered directly thus far, according to Bornyakov, who did not reveal the names.

He responded, “In general all of them have said they have to be compliant with the sanctions list. But it’s a private business. It’s up to them to stay in Russia or leave Russia, but what everybody agrees on is that if there is a sanction from Europe or Ukraine to specific people then they will block them,”

These exchanges, according to Bornyakov, have already banned the accounts of "a couple of thousand people and their relatives who were sanctioned by the US or who were connected with the Russian government."

Several exchanges seem to be banning Russian accounts, but he claims they have not replied straight to the Ukrainian government.

Bornyakov said, “So if you work with Russia even for the crypto you basically support the killing of innocent [civilian] people and that’s unacceptable, and if you stand for human values then you have to pull out of Russia.” 

Currency Exchange rate Buy cryptocurrency

Buy crypto now

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.