Half of Ukraine’s Cryptocurrency Donation Campaigns “Obvious Scams:” Report

Key points to remember

  • About half of the 50+ crypto donation campaigns for Ukraine were flagged as “obvious scams.”
  • However, the scam campaigns only received a small portion of the total crypto funds.
  • Over $135 million worth of crypto has been raised to support Ukraine in just five weeks.

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Around 50% of crypto donation campaigns supposedly helping Ukraine resist Russian aggression are “obvious scams,” according to a new report. However, these scams were only a small part of the money raised since the start of the invasion.

Crowdfunding scams

According to a new report, those wishing to support Ukrainian war efforts against the Russian invasion must be careful not to fall for the scam.

However, according to a new report from blockchain intelligence firm TRM Labs, about half of the more than 50 crypto donation campaigns analyzed were “obvious scams” ​​that did not send the donations to fund humanitarian or military efforts as claimed. . Although somewhat grim, the authors noted that the scam campaigns only “accounted for a small percentage of the overall trading volume”. In other words, donors largely had a keen eye for scams versus legitimate crowdfunding efforts.

The report also broke down the campaigns by type. Campaign types included non-governmental organizations, non-state actors nonetheless involved (military or cyber), private for-profit campaigns, and official government or military campaigns. Non-governmental organizations were the most common, raising $48 million from the two crypto majors, Bitcoin and Ethereum, alone, although they accounted for around half of the roughly 50 campaigns analyzed, while official government campaigns or military, which represented only a small part. campaigns, represented more than $50 million raised.

Ukraine’s defense efforts were increasingly supported by crypto donations even before the Russian invasion, totaling over $135.7 million between February 22 and March 28.

33 different crypto assets were used in the more than 50 campaigns reviewed by TRM.

The authors reasoned that anonymous or semi-anonymous crypto players, inherent in the “decentralized nature” of the technology, create uncertainty that could partly explain the dozens of fraudulent donation campaigns.

The official website for Ukrainian government donations can be found here.

Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other cryptocurrencies.

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Half of Ukraine’s Cryptocurrency Donation Campaigns “Obvious Scams:” Report


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