Overview
- Authorities in Gwangju announced the arrest of four Uzbek individuals, including one with an Interpol Red Notice, for financial transactions linked to Katibat Tawhid wal Jihad.
- The alleged mastermind is accused of transferring 4,267 USDT to the UN-listed group through seven transactions from August 2024 to April 2025.
- He is further alleged to have received cryptocurrency from KTJ, using it to purchase and ship vehicles worth $121,000 to Syria.
In a significant development, South Korean law enforcement has charged four Uzbek nationals with terrorism financing, marking the first known case involving cryptocurrency being utilized to facilitate the transfer of goods from a terrorist organization.
The Gwangju Metropolitan Police Agency revealed the arrests on Tuesday, following an operation conducted in April under the Act on Prohibition Against the Financing of Terrorism, as reported by the Korea JoongAng Daily. The suspected leader of the group has been indicted, detained, and is currently undergoing trial, while the other three individuals are still being investigated but not in custody. Notably, one of them was already wanted via an Interpol Red Notice.
According to police, the ringleader executed seven transfers totaling 4,267 USDT to Katibat Tawhid wal Jihad between August 2024 and April 2025.
KTJ, which is based in Syria and formed in 2014 predominantly by Central Asian fighters, has been designated as a terrorist organization by both the United Nations and the United States.
Reversed Crypto Transactions
The alleged leader is further charged with utilizing cryptocurrency received from KTJ to purchase 11 used cars and two excavators, with a total value of 170 million won ($121,000), which were subsequently sent to Syria. The other three suspects are accused of assisting in the acquisition and export of these vehicles.
"While past cases of terrorism financing typically involved sending money to terrorist organizations, this is unprecedented in that it involves receiving funds from such a group and using them to procure and supply vehicles in return," stated police officials.
Myriad: Where does XRP price go next? Click to make your prediction.Investigators revealed that the ringleader switched between three personal wallets, had payments for the vehicles directed to an account in his spouse's name, and used someone else's driver's license during his arrest. He entered South Korea on a student visa in 2017, graduated from a Daejeon university, and has been living in the country illegally since 2023.
During his initial hearing in June, he denied the primary allegations, asserting that the funds were intended for family living expenses and that he was unaware of who was purchasing the vehicles. He also claimed that a younger sibling had joined KTJ solely for self-defense due to violence targeting Uzbeks in Syria.
Authorities indicated that their investigation led to the apprehension of another suspect with an Interpol Red Notice and that inquiries are ongoing.