Ukraine’s anti-corruption bureau has revealed the country’s first case of a cryptocurrency-based bribe involving a lawmaker who allegedly offered $50,000 in Bitcoin to secure state funds. The case highlights Ukraine’s efforts to combat corruption amid its EU membership aspirations.
Ukraine, a country striving to join the European Union, has recently uncovered a landmark case of a cryptocurrency-based bribe, which is believed to be the first of its kind in the country.
The National Anti-Corruption Bureau of Ukraine (NABU) has accused a lawmaker, who is also a member of the parliament’s anti-corruption committee, of trying to use Bitcoin to facilitate a corrupt transaction.
According to the NABU, the lawmaker offered $50,000 in Bitcoin to the head of the State Agency for Restoration and Infrastructure Development in exchange for allocating state funds for reconstructing infrastructure.
The agency’s head reported the bribe attempt to the authorities after receiving a tranche of $10,000. The NABU has issued a formal notice of suspicion to the lawmaker, whose name has not been disclosed.
This case underscores Ukraine’s intensified fight against corruption, which is a key criterion for initiating membership discussions with the EU. The EU has repeatedly urged Ukraine to implement anti-corruption reforms and strengthen its judicial system.
The NABU’s chief, Semen Kryvonos, has also expressed the agency’s commitment to prioritizing crimes in critical areas like defense and reconstruction, especially during wartime.
The investigation into this unprecedented use of cryptocurrency in a bribery case is part of a broader crackdown. Authorities have also recently suspected two high-ranking cybersecurity officials of embezzlement.
The state reconstruction agency has also reaffirmed its commitment to a zero-tolerance policy towards corruption, pledging ongoing cooperation with law enforcement and anti-corruption bodies.
The use of cryptocurrency in a bribery case is a novel phenomenon that poses new challenges for the authorities. Cryptocurrencies are decentralized and anonymous, making them difficult to trace and regulate.
However, they are also volatile and subject to hacking and theft.
The NABU has stated that it will use all available technical means to identify and seize the cryptocurrency involved in the case.
The case also raises questions about the legal status and regulation of cryptocurrencies in Ukraine, which has been developing a draft law on digital assets since 2018.