US sanctions crypto addresses tied to Russian drone developer

The US Treasury Department’s OFAC has imposed sanctions on a Russian one-way attack UAV developer who solicited cryptocurrency donations via Telegram.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on nearly 300 individuals and organizations on May 1 in an effort to “limit the Kremlin’s income and access to the materials it needs to continue its illegal war against Ukraine.” OFAC said in a press release that the sanctioned entities enabled Russia to acquire “much needed technology and equipment abroad.”

One of the sanctioned individuals appears to be a developer of unmanned aerial vehicles (UAVs) called OKO Design Bureau. According to blockchain forensics firm Chainalytic, the Russian drone manufacturer was operating a Telegram channel soliciting donations in cryptocurrency. OFAC approved three crypto addresses associated with the Saint Petersburg-registered firm:

BTC: 13fhnkmpBBWXUQucJd6efWvXdEj78DKavk. ETH (including USDT): 0x19F8f2B0915Daa12a3f5C9CF01dF9E24D53794F7. TRX (including USDT): TFdTr9C3BqQrzKBXqSxJfAZFTh8UwBAfSg.

Researchers at Chainalytics say the addresses in question are listed under detailed descriptions and videos of OKO Design Bureau’s operations on Telegram, including tests with the Russian Ministry of Defense and “the use of its UAVs against Ukraine.”

One of the cases where OKO Design Bureau mentions crypto addresses for donations | Source: Chainaliz

But researchers say OKO Design Bureau “has had limited success” with its Telegram crypto donation efforts, adding that the firm has raised well under $1,000 in total collections. Although OKO Design Bureau’s total crypto activities are limited, Chainalytics notes that this is not the first time Russian militia groups have publicly detailed their military operations while publicly soliciting crypto donations.

According to the New York-based blockchain firm, more than 50 volunteer groups were committed to crowdfunding Russian military purchases, “spreading disinformation and creating pro-occupation propaganda.” Analysts say organizations have received approximately $2.2 million in donations as of July 2022, but it’s unclear whether this dynamic has grown since then.