Newly uncovered evidence reveals that Russian intelligence agencies, specifically the FSB and GRU, are using cryptocurrency to finance covert operations across Europe. A joint investigation by Reuters, Global Ledger, and Recoveris has exposed a massive Bitcoin network worth $600 million used to fund espionage, propaganda, and influence political actors in the continent. The report highlights how Russian handlers use crypto-flow auditing to track expenses and ensure funds are being used for their intended purpose.
One notable case involved Laken Pavan, a 17-year-old Canadian who was recruited by the FSB. After traveling to Donetsk to volunteer with pro-Russian groups in 2024, he was arrested and tasked with covert operations across Europe. He was paid $500 in Bitcoin through an intermediary wallet linked to a larger address used for laundering funds, tracing back to sanctioned Russian exchange Garantex.
This case is not isolated. Recoveris reports widespread use of cryptocurrency by the GRU and FSB for funding both mercenaries and political influence. It is suggested that these agencies have access to detailed financial records, allowing them to track agent expenses and ensure they remain compliant with their covert operations.