Kraken will donate $10 million to aid Ukraine in its fight against Russia's invasion

Kraken will donate a total of $10 million to aid Ukraine in its fight against Russia's invasion, with a portion of the money coming from fees produced by Russian transactions on the exchange.


Image: Businesswire.com

Kraken has declared that during the first half of 2022, it will donate to Ukraine an amount equal to the total trading fees produced by Russia-based clients.


The payment is part of a $10 million "help package" being put together by the exchange to assist Ukraine in its fight against Russia's incursion.



The humanitarian package is effectively a Bitcoin airdrop coordinated by Kraken, and it is sponsored by Kraken's Ukrainian income as well as the fees produced from Russia-based accounts.


In the first tranche, Kraken will airdrop BTC worth $1000 to all Ukraine-based accounts created before March 9th. To qualify, the accounts must have a "intermediate" or "pro" level of verification.


Because this information is not publicly available, it is unknown how many Ukrainians utilize the platform.


More so, the blog states that the BTC amount distributed in Tranche 1 is nearly similar to the total fees paid by Ukrainian residents to Kraken since 2013.


Note that the airdrop will take place on March 10th, and users will be able to withdraw their funds instantly via the exchange.


To make the gift more accessible, Kraken said it will forgo currency conversion expenses up to $1000. To enjoy the discount, users must log in by May 1st.


In the meantime, individuals who do not have an intermediate verification can request for one to be eligible for the second tranche, which begins on April 1st.


The amount to be awarded in the second tranche has not yet been determined, but it will be based on fees collected from Russian users in the first quarter of 2022.


Adding to this, Jesse Powell, the co-founder and CEO of Kraken said that the more their Russian-based clients trade, the bigger the donation to their UA clients will be.