A Russian national has been handed a prison sentence for utilizing cryptocurrency to aid the Ukrainian Armed Forces financially.

This marks the first publicly known case in Russia of using digital currency to fund a military group.

Crypto-Funding to Ukrainian Army

A resident of the Mirninsky District in Yakutia has been sentenced to seven years in a maximum-security penal colony for financially supporting a Ukrainian terrorist organization, the FSB Directorate for the Republic of Sakha (Yakutia) reported on January 14.

The individual, an employee of a diamond mining company, was found guilty of transferring funds to Ukrainian forces via cryptocurrency. The financial assistance was directed toward a unit of the Armed Forces of Ukraine (AFU), aiding their reconnaissance and subversive activities against Russian security interests.

The investigation revealed that the offender joined a terrorist organization group on a social network, where he received detailed instructions from Ukrainian curators on how to transfer the funds to a designated cryptocurrency wallet.

This sentencing follows an earlier report on January 10, where a resident of Yenakiyevo in the Donetsk Peoples Republic (DPR) was detained on charges of treason. The detainee was accused of repeatedly transferring money to electronic accounts that funded Ukrainian Armed Forces personnel.

This decision comes in the wake of a related case where a Russian national was apprehended for funding digital accounts linked to the Ukrainian Armed Forces.

Russias Crypto Embrace

Amidst a global push for Bitcoin adoption, Anton Tkachev, a State Duma deputy from the New People Party, formally proposed establishing a strategic Bitcoin reserve in Russia in December. Meanwhile, domestic firms have already started utilizing Bitcoin and other digital assets for international payments, which is enabled by recent legislative adjustments designed to offset Western sanctions.

These moves align with President Vladimir Putins earlier statement wherein he highlighted Bitcoins resistance to global regulation and indicated his endorsement of cryptocurrencies, linking the asset classs rise to the declining role of the US dollar as a reserve currency due to its political use.