Johannesburg Man Arrested for Using Cryptocurrency to Fund Terrorism
A Johannesburg resident has been arrested on allegations of using cryptocurrency to finance terrorism. The man, whose identity remains undisclosed, was apprehended by South Africa’s elite crime-fighting unit, the Hawks, following a years-long investigation.
Apprehension After Lengthy Investigation
The Crime Against The State (CATS) team of the Hawks arrested the 35-year-old suspect at his home in Sandton. He faces charges under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act.
According to Colonel Philani Nkwalase, the investigation into the suspect’s activities began in 2018, when suspicions of terrorism financing were flagged by the Financial Intelligence Centre (FIC).
“Cryptocurrency in the form of Bitcoin worth R11,500 was purchased through the Virtual Asset Service Provider (VASP) Luno. The funds were later transferred to another wallet linked to an organization that describes itself as a charity,” Colonel Nkwalase revealed.
Bitcoin Used to Fund International Terrorism
The investigation found that the suspect responded to an appeal for funds intended to support activities involving weapons, financial aid, and other resources for an organization operating in a foreign country. The funds were sent using Bitcoin, highlighting the increasing scrutiny on the use of cryptocurrencies in illicit activities.
Authorities also discovered that the suspect failed to properly secure firearms found at his residence, adding to his legal troubles.
Court Appearance and Broader Crackdown on Terrorism
The suspect is set to appear at the Magistrate Court in Lichtenburg on Monday. Meanwhile, Lieutenant-General Godfrey Lebeya, the national head of the Directorate for Priority Crime Investigation, reiterated South Africa’s commitment to combating terrorism:
“Our dedicated team, in collaboration with local and international partners, is working as a collective to halt the illicit flow of funds that fuel organized crime and terrorism,” Lieutenant-General Lebeya stated.
South Africa has intensified its measures against terrorism financing since the government acknowledged the presence of ISIS in the country in 2016. Notable cases, such as the conviction of the Thulsie Twins for international terrorism, underscore the nation’s focus on disrupting terror networks.
Global Efforts to Curb Illicit Crypto Use
The arrest comes as financial regulators in South Africa and other nations ramp up efforts to monitor and curb the misuse of cryptocurrencies. This case serves as a stark reminder of the potential for digital currencies to be exploited in illegal activities and the growing global response to this threat.
This report aims to inform and does not constitute legal or financial advice.
