Ukraine Faces $10B Loss From Crypto Crime, Says RUSI

Ukraine has already lost up to $10 billion in stolen funds and missed tax revenues due to unregulated crypto activity, according to a new report from the Royal United Services Institute (RUSI). The UK-based security think tank warns that regulatory gaps are being exploited by Russian actors for military funding, drug trafficking, and sanctions evasion.

The report emphasizes Ukraine’s growing role as a crypto laundering hub, highlighting the monthly $24 million loss due to money mule networks known as “drops,” as well as Telegram-based drug sales paid in crypto.

Although Ukraine passed its “Virtual Assets Law” in early 2022, its implementation remains stalled due to a lack of a corresponding taxation bill. As part of its EU accession, Ukraine must align its crypto rules with EU standards and FATF recommendations by late 2025.

Ukraine has sanctioned 19 Russian crypto miners and multiple exchanges, but RUSI warns that more comprehensive regulation is needed to both safeguard financial sovereignty and prevent the country from becoming a long-term crypto crime haven.

Without fast action, Ukraine may lose more funds, miss out on legitimate crypto growth, and face further damage to its international standing.