Cryptocurrency crash devalues Ukraine’s government crypto fundraise

Cryptocurrency crash devalues Ukraine’s government crypto fundraise

LONDON - Ukraine, battered by three months of war, plans to continue to tap crypto investors to help raise funds after a plunge in prices decimated the country’s fundraising efforts in May.

Following the Russian invasion of Ukraine on Feb. 24, the Ukrainian government used social media to ask for cryptocurrency donations. Ukraine's Vice Prime Minister Mykhailo Fedorov sought to rally crypto investors this week at the World Economic Forum in Davos.

On March 19, the government's "Aid for Ukraine" fund said it had raised more than $60 million worth of cryptocurrency. But two months later, on May 19, the total raised was worth $51.5 million, Ukraine's deputy minister for digital transformation Alex Bornyakov said.

Cryptocurrencies have fallen sharply in recent weeks. Bitcoin has lost more than 20% of its price so far in May, following a 17% drop in April, highlighting the risks faced by holders of the highly volatile assets.

All the funds raised in the "Aid for Ukraine" fund were stored in cryptocurrency but the government was able to spend $45 million of it on equipment for Ukraine's army before the crash, Bornyakov said in written responses to Reuters questions.

Ukraine has been funding its war effort in part with cryptocurrencies. The