South African Authorities Arrest Man Accused of Using Bitcoin to Fund Terrorist Activities

A South African law enforcement agency recently apprehended a 35-year-old man suspected of using cryptocurrency to fund terrorist activities.

Suspicous Transactions

A South African law enforcement agency recently apprehended a 35-year-old man who is alleged to have used cryptocurrency to fund terrorist activities. According to the Hawks, the man, whom they tracked to a house in Johannesburg, contravened the Protection of Constitutional Democracy and Related Activities Act.

Philani Nkwalase, a spokesman for the law enforcement agency, revealed that the Hawks launched an investigation into the man after receiving information about the terror-related activities.

“The probe ensued in May 2018 when the Financial Intelligence Centre (FIC) and the Hawks received information about suspicious transactions allegedly linked to terror financing. Cryptocurrency in the form of Bitcoin worth $614 (ZAR11,500) was allegedly purchased through Luno, virtual asset service provider (VASP), via transfer of money from the suspect’s bank account to Luno’s custody account on 30 November 2017,” Nkwalase said.

Immediately afterward, the bitcoin was moved to another wallet associated with an unnamed “independent” organization. South African law enforcement said its preliminary investigation indicates that the funds were transferred to support “participants” in another country with weapons, financial aid, and other projects.

After determining the purpose of the funds, South African law enforcement raided the suspect’s home on Oct. 24, armed with a search warrant. Several materials were seized, including firearms that were not locked away in a safe place as prescribed by law.

Meanwhile, Godfrey Lebeya, head of the Directorate for Priority Crime Investigation, said his team is collaborating with both local and international agencies to “halt the illicit flow of funds that fuel organized crime and terrorism.”

The man is expected to appear in a Lichtenburg Magistrate’s Court on Jan. 6.