From bankrolling ballistic missiles in North Korea to arming militants in Gaza, cryptocurrency is quietly shaping the modern battlefield. Once hailed as a tool for personal financial freedom, it has also become a shadowy lifeline for regimes and groups seeking to bypass sanctions and scrutiny.
The same decentralized networks that let dissidents and war-torn nations receive donations without middlemen are also enabling the financing of nuclear weapons, drones, and other lethal hardware. Hamas solicits crypto contributions to fund its operations, while North Korea’s Lazarus Group has stolen billions in digital assets — with a significant share allegedly funneled into its nuclear program. In Ukraine and Russia, official channels and grassroots campaigns alike have tapped Bitcoin and other coins to equip armies, underscoring how digital currencies have become as much a weapon of war as a store of value.
Summary
- Millions worth of crypto is used to finance military projects on a regular basis
- Russia, Ukraine, and Hamas use crypto as a tool for fundraising
- North Korean and Israeli hackers obtain crypto violently through thefts
North Korean nuclear military program
Arguably, the most disturbing instance of cryptocurrencies being used for deadly weapon development is the nuclear program of the Democratic People’s Republic of Korea. A hacker organization, the Lazarus Group, which succeeded in stealing billions of dollars worth of cryptocurrencies from the cryptocurrency exchanges, is believed to be supported by the Pyongyang regime.
Lazarus Group carried out one of the biggest heists in history when they stole $1.5 billion in cryptocurrency from the ByBit exchange. Twenty percent of the funds disappeared into untraceable wallets, making it unlikely the funds will ever be recovered.
Elliptic’s Tom Robinson attributes the success to high sophistication of the hackers involved, years of experience, speed, and relentless focus on the goal.
There is no official data on how much of the crypto stolen by North Korean hackers is used to fund the country’s nuclear program. However, a source close to the matter said that around 40% of the stolen crypto funds are used for the development of ballistic missiles.
Crypto as a fundraising tool during military conflicts
Both Ukraine and Russia have used cryptocurrency addresses to solicit donations for weapons, ammunition, and other military supplies.
In March 2022, soon after Russia launched an invasion on Ukraine, President Volodymyr Zelenskyy signed the “On Virtual Assets” law, establishing a legal framework for digital assets and regulating crypto exchanges and wallets. It allowed the country to raise donations from across the world more freely while facing increasing economic strains. In June, the Ukrainian Rada introduced a new bill allowing the central bank to hold bitcoins alongside its gold reserves.
In August 2022, then Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov declared that Ukraine spent $54 million worth of donated crypto on the army’s needs, including helmets, armor vests, rifle scopes, weapons, and so on.
As of Aug. 7, 2025, Arkham Intelligence displays just 0.133 BTC on Ukraine’s balance. Elliptic points out that of $78 million of donations raised by Ukraine after the conflict escalation, only 1% was raised via Bitcoin. These discrepancies make it difficult to determine the actual Bitcoin holdings of Ukraine. According to another article by Elliptic, Ukrainian fundraisers managed to collect dozens of millions of dollars in donations in 2023.
According to a popular misconception, Ukraine owns around 46,000 BTC. However, this evaluation refers to the combined Bitcoin holdings that Ukrainian officials gained between 2018 and 2021. It is unlikely that they are associated with the current Ukraine Bitcoin holdings. Rather, this amount represents an estimation of personal holdings Ukrainian public servants had before 2022.
Russia also used crypto during the military conflict with Ukraine. In addition to evading sanctions in international trade, Russia’s use of crypto during the conflict with Ukraine includes accepting donations that fund the Russian army.
On Jul. 29, 2022, Chainalysis published its findings on the subject. Investigators identified 54 organizations that raised $2.2 million. The money was used to buy drones, weapons, armor vests, etc. At least some of the entities conducting crowdfunding for the Russian army are sanctioned.
Hamas relies on fundraising through crypto donations, too. Donations to Hamas are classified as funding terrorism, and U.S. authorities seize such cryptocurrency.
The war-driven demand for real-time intelligence, secure communications, and decentralized finance hasn’t gone unnoticed by defense tech firms. As governments scramble to monitor and counter crypto-fueled operations, companies like Palantir have emerged as critical partners — marrying big data analytics with battlefield strategy.
Potential Bitcoin pivot of Palantir
Founded in 2003, Palantir has evolved into a multifaceted company. The Denver, Colorado-based firm has partnered with the U.S. Army since 2008. Its products are used by the U.S. Department of Defense and various police agencies. Strangely enough, while the company is closely tied to influential crypto advocates, it does not widely use cryptocurrencies.
In 2021, Palantir’s Chief Financial Officer, David Glazer, said the company was considering adding Bitcoin to its balance sheet — something that, as of Aug. 8, has not happened. That same year, however, Palantir began accepting Bitcoin payments. Some believe creating a corporate Bitcoin reserve would have strengthened Palantir’s strategy, but the company has yet to fully wade into the crypto waters.
President Donald Trump is a fan of Palantir, while Peter Thiel — the company’s chairman and co-founder — is its most prominent cryptocurrency enthusiast. Thiel, who made generous donations to J.D. Vance’s 2022 campaign, is an avid crypto investor with a 9.1% stake in Ethereum treasury company Bitmine. As of Aug. 8, 2025, his crypto exchange, Bullish, is pursuing an IPO targeting a $4.23 billion valuation.
Despite being criticized for enabling racist police profiling, deportations, and mass surveillance, Palantir achieved a major breakthrough this year. On Aug. 5, it secured a ten-year, $10 billion deal with the U.S. Army. The company also reported its first billion-dollar revenue year, with CNN calling it “one of the buzziest (and most expensive) stocks on Wall Street” and noting that its valuation now exceeds that of The Walt Disney Co. and American Express combined.
Palantir’s technology has been used by Israel and Ukraine in their respective military conflicts. Some believe the company played a role in tracking down al-Qaeda founder Osama bin Laden, though co-founder Alex Karp downplays the rumor. In an interview with The New York Times, referring to Palantir’s work, he said, “Saving lives and on occasion taking lives is super interesting.”
Given Thiel’s deep exposure to the crypto markets, Palantir’s limited Bitcoin history, and its clients’ involvement in crypto, some speculate the company could adopt Bitcoin more fully in the future.
