Khaberni - A new report issued by Chainalysis, a company specializing in blockchain analytics, states that groups associated with Russia and Iran are increasingly using cryptocurrencies to finance the purchase of drones and low-cost military components.
Commercially available drones have become a key element in the ongoing conflicts in Ukraine and the Middle East, but due to the widespread availability of low-cost drones, officials often find it difficult to track who is behind the purchases.
Chainalysis concluded that while most drone purchases are made using traditional financial channels, purchasing networks increasingly intersect with blockchain (cryptocurrencies). This ledger allows investigators to track the transaction path from its origin to its destination.
Researchers focused on blockchain at Chainalysis have been able to track the flow of cryptocurrencies from individual wallets linked to drone developers or paramilitary groups to purchase low-cost drones.
The report mentioned that since the beginning of the Russian-Ukrainian war in 2022, groups loyal to Russia have received more than $8.3 million in cryptocurrency donations, with drones being among the specifically detailed purchases made using those donations.
Andrew Firman, the head of national security intelligence at Chainalysis, said, "There is an amazing opportunity on the blockchain, once the seller is identified, to see the counterparty's activity and make assessments that help clarify the usage and the intent behind the purchase."
The report also found that groups associated with Iran use cryptocurrencies to buy drone spare parts and sell military equipment. It particularly highlighted a cryptocurrency wallet linked to the Iranian Revolutionary Guard that purchases drone spare parts from a supplier based in Hong Kong.
Indeed, the total volume of drone purchases with cryptocurrencies remains small compared to the overall military spending, but the report noted that blockchain technology could help authorities better track purchases.
Firman said, "Blockchain technology can provide a lot of information that is not necessarily available through traditional methods."
