Ukraine’s $10 Billion Crypto Hole: RUSI Sounds the Alarm

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 02, 2025

Key Takeaways

Ukraine has likely lost over $10 billion due to crypto crime and tax shortfalls, says a report by the Royal United Services Institute;
RUSI said scams involving cash trades, stolen crypto, and fake mule accounts drain $24 million monthly from Ukraine's public funds;
Ukraine could face FATF penalties and EU delays, which would harm its financial system and global ties.

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Ukraine has likely lost more than $10 billion through stolen crypto assets and missed tax revenue, according to a report by the Royal United Services Institute (RUSI), a UK-based think tank.

The report said the country could start recovering these funds if it sets up a clear system for regulating digital assets.

The document describes Ukraine as a growing center for crypto-related crime. It points to several areas where illegal activity is taking place, including cash-based crypto trades, stolen digital funds being sent through the country, and the purchase of restricted items for Russia’s military.

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The report also noted that many scams use regular citizens to move illegal funds. These people, often called “drops”, are paid small amounts to allow their bank or crypto accounts to be used for transfers. Around $24 million is lost monthly due to these networks.

Telegram-based drug operations that accept crypto payments are another concern. The report claimed that some of these efforts are directly aimed at Ukrainian soldiers, possibly to weaken morale.

Ukraine must align its crypto rules with the European Union’s standards by the end of 2025 to move forward with EU membership. It also needs to meet international anti-money laundering guidelines set by the Financial Action Task Force (FATF).

RUSI warned that Ukraine could face a downgrade in its FATF compliance rating if it does not make improvements. This could affect international payments and partnerships.

Meanwhile, a group of international regulators and exchange associations recently asked the US Securities and Exchange Commission (SEC) to take a stance on tokenized stocks. What did they say? Read the full story.