Amid the Ukraine-Russia War and Cryptocurrency donations, cyberattack could be employed at this time. Here is how you can report crypto fraud.
Ukraine-Russia War Brief Summary
The Ukraine-Russia war is no longer new to the world. The Russian invasion of Ukraine started on February 24, 2022, and since then lives were lost, properties were destroyed and many people left homeless living as refugees in another man’s land.
Attacks by Russian forces have been reported in major Ukrainian cities such as Berdyansk, Chernihiv, Kharkiv, Odesa, Sumy, and Kyiv.
As of March 9, the Office of the United Nations High Commissioner for Human Rights (OHCHR) had confirmed 549 civilian deaths in Ukraine as a result of the conflict. Thousands of Ukrainians fled to the west of their country and abroad as a result of the war, resulting in a humanitarian crisis.
As of March 9, neighboring Poland had the most refugees, with roughly 1.3 million, followed by Hungary, Slovakia, and Romania. Very frightening indeed.
The war has taken a new shape as the war has gained international reactions. Most European countries have started placing sanctions on Russian businessmen around the globe.
The nation of Ukraine has received donations around the world concentrating specifically on cryptocurrency. The Ukraine-Russia War and cryptocurrency donations to the nation of Ukraine seem to have skyrocketed.
Ukraine-Russia War and Cryptocurrency
Cryptocurrency has become a more mainstream aspect of the global financial system, which implies it will unavoidably become involved in international warfare, for better or worse.
The Ukraine-Russia War and Cryptocurrency seem to be developing as the day runs by.
Hundreds of millions of dollars in the cryptocurrency have been sent to Ukraine’s army and hacktivist groups.
The Ukrainian government announced on February 26 that they are now accepting cryptocurrency donations most especially Bitcoin, Ethereum, and USDT and since then have received millions of donations.
Even the Ukrainian government is accepting cryptocurrency donations, and as of March 9, it has raised close to $100 million according to Alex Bornyakov, Ukraine’s deputy minister at the Ministry of Digital Transformation and the de facto crypto spokesperson of the government.
This is a surprising boost in crypto donations to the country of Ukraine during this conflict, considering Coinscreed only reported $37 million on February 28.
The Bored Ape Yacht Club (BAYC) stated on March 8, that it has donated $1 million in Ethereum (ETH) to the Ukrainian government’s ether address.
The BAYC team also shared a link to the blockchain explorer for the transaction (etherscan.io).
Cyberattack Could be Employed
According to Reuters, the US Treasury is afraid that as retaliation for western sanctions, Russia may launch cyberattacks on crypto firms, including exchanges that hold many investors’ currencies.
Following Russia’s invasion of Ukraine, the US and its allies imposed a raft of sanctions on the country’s banks, state-owned enterprises, and elites, among others.
Because “international banking norms and regulations are not as easily applied to cryptocurrencies,” argues Adam Levin, a cybersecurity expert, and host of the “What the Hack” podcast, Russia might use crypto as a type of currency to avoid sanctions.
He claims, “It’s no surprise Russians are employing it in the face of economic sanctions.”
And, as Russia’s war in Ukraine continues, Levin predicts that there will be more cybercrime and attempted frauds for investors to be aware of in the next weeks and months.
Russian-connected hackers have long been a source of concern: according to research, more than 70% of all money made from ransomware hacks in 2021 went to hackers affiliated with Russia.
On February 25, for example, the Conti ransomware gang, which claims to be based in Russia, proclaimed its goal to aid the Russian government by attacking the key infrastructure of anyone who starts cyberattacks against Russia.
This is another area the Ukraine-Russia War and Cryptocurrency can take shape.
How Can Investors Protect Their Crypto?
Scammers appear to be taking advantage of the Ukraine-Russia conflict to take money from individuals who are trying to help.
Scammers produced a bogus token called “Peaceful World” to try to deceive people into thinking it was gathering donations for Ukraine.
Phishing emails and fake charity websites have also started to appear.
Crypto hacks and frauds have become increasingly widespread as cryptocurrency has increased in popularity.
According to research by blockchain data firm Chainalysis, scammers stole about $14 billion in cryptocurrency in 2021, nearly twice as much as the year before.
As a result, it’s critical to put in place solid security measures to secure your cryptocurrency investments, as well as to be extra cautious about where you send any crypto donations.
The safest way to ensure that your cryptocurrency is donated to Ukraine is to give it straight to the government. On February 26, Ukraine’s official (and verified) Twitter account made its cryptocurrency wallet addresses public.
How to Report a Cryptocurrency Scam
When you believe or have evidence that criminal actors are at work, you can report fraud to the crypto exchange you used to conduct the crypto transaction.
You can also report cryptocurrency fraud and other questionable conduct to the following bureaus:
The Federal Trade Commission’s website is ReportFraud.ftc.gov.
At CFTC.gov/complaint, you can file a complaint with the Commodity Futures Trading Commission (CFTC).
The Securities and Exchange Commission (SEC) of the United States can be found at sec.gov/tcr.
