South African Man Arrested for Using Bitcoin to Fund Terrorism

 A 35-year-old man was arrested in South Africa for allegedly using cryptocurrency to fund terrorism activities. Investigation ongoing.

A 35-year-old man has been arrested in South Africa for allegedly using cryptocurrency to fund terrorism. His arrest took place at his home in Johannesburg Friday afternoon. A long investigation led to the arrest in South Africa by the Hawks, the country’s elite law enforcement agency.

The matter was first investigated in May 2018. The Financial Intelligence Centre (FIC) and the Hawks received information on suspicious transactions, Hawks spokesperson Colonel Philani Nkwalase said. It appeared that these transactions were associated with terrorist financing. As a result, the authorities began their probe into the matter.

On November 30, 2017, the suspect bought Bitcoin worth R11,500, the investigation found. The purchase was made via tissue using Luno, a Virtual Asset Service Provider (VASP). The suspect was able to transfer money into Luno’s custody account from his bank account. The suspect’s Bitcoin then went from his Luno wallet to an organization wallet. The group described itself as an independent charity.

South African Police Investigate Bitcoin Payments for Terrorism

A further investigation would prove that the transfer of Bitcoin was done in answer to a call for financial support. The help sought on appeal was for activities involving weapons, financial aid, and projects that aided the people in another country. In addition, this financial support was believed to be related to terrorism by the police.

From there, the authorities got a search warrant. On October 3, 2024 they went to search the suspect’s Sandton home. Several pieces of evidence were seized which will be investigated further as part of the search. Moreover, the suspect’s two licensed firearms were found not to be safely stored as required by law, police said. Another charge was added to this violation.

He is expected to appear in the Lichtenburg Magistrate’s Court on Monday. This case was important, said Lieutenant General Godfrey Lebeya, national head of the Directorate for Priority Crime Investigation. Local and international partners are relating on how to stop their flow of illegal funds, he said.

However, this case is one of an increasing number of discoveries about the use of cryptocurrency for illegal purposes. With technology as technology does, law enforcement has been and will continue to try to prevent such crimes and track criminals. Hawks and partners will continue investigating and disrupting funding to terrorists.