Russia Uses Cryptocurrency to Fund Covert Operations in Europe
Poland’s National Security Chief, Sławomir Cenckiewicz, claims Russia uses cryptocurrency to secretly fund sabotage across Europe. Speaking to the Financial Times on October 13, he said Moscow relies on digital currencies to hide money trails from Western intelligence. These funds support drone attacks, cyber operations, and strikes on critical infrastructure like water and energy systems.
Cenckiewicz explained that intelligence shared by Poland, Denmark, Germany, and Norway confirms Russia’s “shadow fleet” of old oil tankers is now used for drone reconnaissance missions. “They confirm that the shadow fleet of often very old Russian oil tankers that used to smuggle oil is being used by Russia for [drone] reconnaissance,” he said.
Poland Strengthens Cryptocurrency Regulations
Polish intelligence traced these activities back to 2023, uncovering a GRU spy network funded mainly through cryptocurrencies. Cenckiewicz said the Kremlin continues to use similar methods for covert operations.
In response, Poland has tightened its crypto laws, introducing prison sentences for violations. This aims to close financial gaps that foreign governments might exploit to fund spies or disruptive acts.
“The Polish intelligence services are very much interested in this whole legislative process, to ensure there are no gaps that would allow foreign powers to use [crypto] to finance their agents,” Cenckiewicz noted.
Russia’s Growing Reliance on Digital Assets
Russia’s use of cryptocurrency increased after it was cut off from the SWIFT banking system following its 2022 invasion of Ukraine. Since then, Russian institutions have turned to crypto to maintain financial flows and evade Western sanctions.
Deputy Finance Minister Ivan Chebeskov said over 20 million Russians now use crypto “for various purposes,” calling it a financial reality the government must accept.
The European Commission is preparing its 19th sanctions package targeting crypto platforms and transactions linked to Russian entities. “We are targeting the financial loopholes that Russia uses to circumvent sanctions,” said European Commission President Ursula von der Leyen.
Read the full Financial Times report.
