tl;dr
Russian intelligence services, including the FSB and GRU, have been using Bitcoin to pay teenage and untrained spies, according to a Reuters investigation with blockchain analytics firms Global Ledger and Recoveris. The case of Laken Pavan, a Canadian teenager recruited by the FSB in Donetsk and pai...
Russian intelligence services, including the FSB and GRU, have been using Bitcoin to pay teenage and untrained spies, facilitating covert operations across Europe. According to a Reuters investigation with blockchain analytics firms Global Ledger and Recoveris, these agencies utilize cryptocurrency wallets linked to the FSB for complex money laundering and funding espionage, propaganda, and sabotage efforts without government barriers.
The case of Laken Pavan, a Canadian teenager recruited by the FSB in Donetsk and paid over $500 in Bitcoin, highlights how these operations work. Pavan was radicalized online, detained by FSB agents, and assigned a handler named ‘Slon’ who sent payments via Bitcoin as Pavan traveled across Europe gathering intelligence. Blockchain analysis traced these payments to large wallets handling billions in transactions, revealing structured laundering patterns and connections to sanctioned Russian exchanges and major mining pools.
Cryptocurrency enables Russian intelligence to move large sums instantly worldwide, circumventing traditional financial sanctions while allowing intelligence handlers to monitor and audit expenditures to ensure operational funds are spent as intended. Recoveris observes ongoing financing of agents—including young operatives in Poland tasked with espionage, propaganda, arson, and spreading disinformation.
Beyond paying spies, Russia also uses crypto to fund private mercenaries in the Donbas conflict and bribe European politicians for pro-Russian messaging. Despite international sanctions, the transparency and speed of Bitcoin payments provide a strategic advantage to Russian intelligence agencies, ensuring continued use of cryptocurrencies in their covert activities for the foreseeable future.