One of the first cases involving crypto funding and treason was settled recently. A Russian national was sentenced to 7 years in prison for aiding the Armed Forces Of Ukraine in the context of the ongoing conflict between the two nations.

The individual faced charges of “high treason in the form of providing financial assistance to a foreign state, international or foreign organization or their representatives in activities directed against the security of the Russian Federation,” according to local news outlet Izvestia.

The unnamed individual was identified as an employee of a diamond mining company who provided aid to enemy forces to carry out reconnaissance and subversive activities against national security.

This sentence comes on the heels of another similar case in which another Russian citizen was detained for funding digital accounts that were actively funding officials of the Ukrainian Armed Forces.

Given the pseudonymous trait of cryptocurrency transactions, the Russian state passed a regulatory framework that enhances the faculties of government agencies to access digital currency identifier addresses.

Read more: Russia Publishes New Crypto Law Expanding State Control Over Digital Assets

This means they have enhanced capabilities to track transactions linked to money laundering or terrorist financing activities.

Cryptocurrency has served as a vehicle for funding both sides of this conflict. According to an analysis by Hapi Labs, over $40 million in crypto was utilized to sponsor the Russian side of the conflict in 2022.

Ukraine has also turned to crypto donations in the face of this confrontation. In 2022, the country started an arrangement with Coingase, a cryptocurrency payment processing company, to receive funds in the form of crypto to support the Ukrainian Armed Forces operations against the Russian Forces. At that time, Polkadot creator Gavin Wood donated $5 million to the cause, moving others to contribute.

Read more: Most Crypto Sent From Wallets Sponsoring Russia in Ukraine War Reaches CEXs, Binance, Research Shows

Read more: Ukraine Crypto Donations: Government Now Accepts Over 70 Crypto Assets

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