Half of Ukrainian Crypto Donation Campaigns “Apparent Scams:” Report

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Key Takeaways

  • Round half of the greater than 50 crypto-donation campaigns for Ukraine had been flagged as “apparent scams.”
  • The rip-off campaigns solely obtained a small portion of complete crypto funds, although.
  • Greater than $135 million price of crypto has been raised in help of Ukraine in an solely five-week interval.

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Round 50% of the crypto donation campaigns purporting to help Ukraine’s efforts of withstanding Russian aggression are “apparent scams,” in accordance with a brand new report.  Nonetheless, these scams solely accounted for a small portion of the cash raised for the reason that invasion roughly started.

Crowdfunding Scams

These wishing to help Ukrainian warfare efforts towards the Russian invasion needs to be cautious to not fall for scams, in accordance with a brand new report.

Nonetheless, in accordance with a brand new report by the blockchain intelligence agency TRM Labs, round half of the greater than 50 crypto-donation campaigns analyzed had been “apparent scams” that didn’t ship the donations to fund humanitarian or navy efforts as purported. Whereas considerably bleak, the authors famous that rip-off campaigns solely “accounted for a small share of general commerce quantity.” In different phrases, donators largely had a discerning eye for scams versus official crowdfunding efforts.

The report broke down campaigns by sort, as properly. The forms of campaigns included non-government organizations, non-state actors nonetheless concerned (navy or cyber), personal, for-profit campaigns, and official governmental or navy campaigns. Non-government organizations had been the most typical, elevating $48 million from the 2 crypto majors, Bitcoin and Ethereum, alone, although they represented round half of the roughly 50 campaigns analyzed, whereas official authorities or navy campaigns, which solely accounted for a small portion of the campaigns, accounted for greater than $50 million raised.

Ukraine’s protection efforts have more and more been supported by crypto donations, even previous the Russian invasion, totaling over $135.7 million price from between Feb. 22 and Mar. 28.

33 totally different crypto property had been utilized throughout the over 50 campaigns that TRM scrutinized.

The authors opined that nameless or semi-anonymous actors in crypto, inherent to the know-how’s “decentralized nature,” create uncertainty that may partially clarify the handfuls of rip-off donation campaigns.

The Ukrainian authorities’s official donation website could be discovered right here.

Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and several other different cryptocurrencies. 

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