The law enforcement and counter-intelligence agency of Ukraine has managed to seize the funds in a cryptocurrency wallet used to finance the Russian military campaign in the country.
Officials in Kyiv claim that money collected through the wallet has been spent on military equipment for the pro-Russian separatist forces in the east.
The Security Service of Ukraine (SBU) has for the first time implemented a mechanism to curb fundraising through cryptocurrency for the troops fighting on the Russian side in the ongoing hostilities in the country.
In a press release on Tuesday, the SBU announced that a crypto wallet operated by a citizen of the Russian Federation and used to sponsor Russias military effort in Ukraine has been blocked.
The wallet had accumulated digital coins worth 800,000 hryvnia (almost $22,000 at current rates) by the time it was blocked, the SBU said, adding that the funds have since been seized.
Ukrainian investigators have been able to establish that the wallets owner devoted a significant portion of the donated crypto to the purchase of military supplies for the separatist fighters of the self-proclaimed Luhansk and Donetsk Peoples Republics.
The Russian activist has been actively seeking financial assistance on social media platforms since the latest phase of the conflict began.
A report by the blockchain forensics firm Chainalysis unveiled last month that 54 pro-Russian groups have collectively received over $2.2 million worth of cryptocurrency.
Ukraine itself has been relying on crypto donations, with both the government in Kyiv and volunteer groups raising digital money to fund defense efforts.