A Johannesburg resident has been apprehended by authorities for using cryptocurrency to fund terrorism. The suspect, who remains unnamed, was tracked down and arrested at his home, according to the Hawks.
The Hawks, also known as the Directorate for Priority Crime Investigation, is a specialized unit of the South African Police responsible for investigating serious organized criminal offenses.
The Crime Against The State (CATS) team made the arrest of the 35-year-old male suspect on Friday afternoon. He has been charged with violating the Protection of Constitutional Democracy Against Terrorist and Related Activities Act. Hawks spokesperson Colonel Philani Nkwalase stated that the arrest followed a thorough investigation.
Johannesburg Man Arrested for Financing Terrorism with Cryptocurrency
The investigation into the suspect’s activities began in 2018, as reported by the spokesperson. The Hawks and the Financial Intelligence Centre (FIC) were alerted to potential terrorism financing suspicions.
Colonel Nkwalase disclosed that the suspect, based in Johannesburg, conducted numerous cryptocurrency transactions through the Virtual Asset Service Provider (VASP) Luno.
“Cryptocurrency in the form of Bitcoin totaling R11,500 was purportedly bought through Luno, a Virtual Asset Service Provider (VASP), by transferring money from the suspect’s bank account to Luno’s custody account on November 30, 2017,” Colonel Nkwalase explained.
Following the transfer, the suspect transferred funds in Bitcoin from his wallet to an organization claiming to be a charity.
Investigations revealed that the funds were sent in response to a request for financial assistance for activities involving weapons, financial aid, and other projects supporting individuals in another country. “The preliminary investigation indicated that the transfer was in response to a plea for financial backing for activities involving weapons, financial aid, and other projects assisting participants in another country,” added Colonel Nkwalase.
Suspect Scheduled to Appear in Court as South Africa Intensifies Anti-Terrorism Measures
Following the conclusion of investigations, the police secured a search warrant and conducted a comprehensive search of the suspect’s residence in Sandton. The police seized several materials crucial to their inquiries during the search.
Additionally, it was discovered during the search that the suspect had not stored his firearms securely in a safe as required by law.
The Johannesburg-based suspect is set to appear in the Magistrate Court in Lichtenburg on Monday.
Lieutenant-General Godfrey Lebeya, the national head of the Directorate for Priority Crime Investigation, emphasized the country’s commitment to combating terrorism. “Our dedicated team, in collaboration with local and international partners, is working collectively to disrupt the illicit flow of funds that support organized crime and terrorism,” stated Lieutenant-General Lebeya.
South Africa has taken steps to curb terrorism financing, particularly after the identification of ISIS presence in the country in 2016. The government successfully prosecuted Johannesburg-based individuals, the Thulsie Twins, for international terrorism. Ongoing efforts continue to target individuals and organizations engaged in such activities.
The country, alongside some financial regulators, is actively participating in a global initiative to combat this threat.
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