Everstake, a Ukrainian-based blockchain company, is accused of being part of a network involving Kiev, democratic politicians and cryptocurrency exchange FTX.
As part of its maneuvers to generate more funds for the war effort, the Ukrainian government has launched the “Aid for Ukraine” website which allows donations to be received in cryptocurrency. These donations were then converted into fiat currency and deposited in the National Bank of Ukraine. The grants were to be used to purchase a range of essential goods, from medical supplies to military clothing.
The Ministry of Digital Transformation has partnered with FTX, the Kuna stock exchange of Ukraine, and Everstake to facilitate cryptocurrency donations, totaling between $60 million and $100 million.
Due to former FTX CEO Sam Bankman-Fried’s huge donations to Democratic lawmakers and the timing between the fund’s creation and President Joe Biden’s billions in financial and military aid in Kiev, many believe these financial transactions are suspicious. Opponents believe Ukraine invested in FTX to funnel money to the Democratic Party.
According to Everstake CEO Sergey Vasylchuk, it is ridiculous to believe that the Ukrainian government invests in private companies during the war and uses essential resources for political gains, explaining that Kyiv “invested in the needs of families” with the help received.
He added that the platform set up to receive donations was chaotic at the start of the conflict.
“It was a disaster at the time”he has declared. “For my part, I’ve never seen it as a formidable scam. For my part, when it is said that Ukraine invests in companies, I am simply not aware of it. »
Sergey Vasylchuk confirmed that he has never been in contact with Sam Bankman-Fried, explaining that FTX had only a small role in fundraising.
“We have six people who were part of the legal compliance team who helped get the ‘Aid for Ukrain’ project off the ground”he has declared.
Cryptocurrency has become a vital tool in the military conflict in Eastern Europe.
In recent months, pro-Russian organizations have accepted cryptocurrency donations, raising millions of dollars in digital currencies which are then used to support Moscow’s military campaign.
Following the FTX crash, many concerns were expressed about a possible contagion effect. Cryptocurrency prices have plummeted, cryptocurrency-related businesses have plummeted, and many investors in the Bankman-Fried empire are now financially struggling.
But Sergey Vasylchuk says Everstake is weathering the storm by maintaining diversified assets and because the company is always highly informed. Finally, Everstake uses various wallets to ensure the safety of its holdings.
Ukrainian officials have also addressed the recent allegations, including Deputy Minister of Digital Transformation Oleksandr Bornyakov, who called them a “nonsense”.
“A crypto fundraising foundation @_AidForUkraine used @FTX_Official to convert crypto donations to fiat in March. The Ukrainian government has never invested funds in FTX. The entire narrative that Ukraine has invested in FTX , who gave money to Democrats, is frankly absurd.”wrote in a tweets last week.
The Aid for Ukraine site was recently removed and replaced by “UNITED24”.
“UNITED24 was launched by President Volodymyr Zelensky as the main venue for collecting charitable donations for Ukraine. The funds will be transferred to the official accounts of the National Bank of Ukraine and allocated by the relevant ministries to cover the most urgent needs.”says the new website.
The site also informs visitors: “We are looking for companies or enterprises that can help Ukraine with specific needs. »
Washington investigates FTX’s ties to Ukraine
A growing number of US officials are baffled by these explanations.
Several Republicans in the House of Representatives, led by Representative Troy Nehls (Republican-Texas), said in a letter to Secretary of State Antony Blinken that he had recently been brought to their “Beware that billions of taxpayer dollars sent to Ukraine to aid in its war efforts have potentially been invested in a cryptocurrency exchange resulting in massive donations to Democrats” during the mid-term electoral campaigns.
“Although this partnership has been touted as a way to help Ukraine raise cryptocurrency donations for munitions and humanitarian aid, we have serious concerns that the Ukrainian government may have invested portions of nearly $66 billion in US economic aid to FTX to keep the Democrats in power and keep the money flowing”explain the MPs in the letter (pdf) obtained exclusively by Fox Business.
“We sincerely hope that the main driver behind Congress’s billions in aid to Ukraine were not Democrats trying to hold on to power, and that none of the missing funds were used as a pass to avoid campaign finance laws.” or end up in the pockets of the Democrats. »
A State Department spokesperson told Fox Business there isn’t “no reason to believe that these rumors are anything other than outright lies and misinformation.”
The House Financial Services Committee, led by Rep. Maxine Waters (Democrat-California) and Rep. Patrick McHenry (Rep.-North Carolina) announced a bipartisan hearing on the FTX debacle and what it could mean for the money industry. digital assets. The committee plans to hear from Sam Bankman-Fried and other members of FTX, Alameda Research, Binance and other entities in relation to this failure.
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