How Crypto Got So Caught Up in the Russia-Ukraine Conflict

Crypto quickly became embroiled in the Russia/Ukraine conflict that broke out last week, a sign of how embroiled it has become in the wider global economy and geopolitics — and how its libertarian leanings inform its actions now.

After the official Ukraine Twitter account posted addresses for donations, the crypto community, via 24,000 addresses, sent over $22 million in donations to Ukraine, according to blockchain analytics provider Elliptic. FTX cofounder and CEO Sam Bankman-Fried donated a quarter million dollars in Tether, and Chain.com CEO Deepak Thapliyal made a donation of ETH worth slightly more in dollar terms.

Other pro-Ukrainian accounts such as Come Back Alive and Support Ukrainian Sovereignty, have also received crypto donations. And UkraineDAO, organized by the band Pussy Riot, quickly amassed more than $3 million in donations.

But also, within days, President Joe Biden’s administration was considering sanctions on Russia’s crypto markets. There was also concern that crypto could be used to evade sanctions. Certainly that’s an issue that Senator Elizabeth Warren raised. She tweeted: