South Korean authorities have arrested four Uzbek nationals for terrorism financing via cryptocurrency, marking a significant case in the region.
Overview
- Four Uzbek nationals have been arrested in Gwangju for financing terrorism through cryptocurrency, including one individual with an Interpol Red Notice.
- The main suspect allegedly transferred 4,267 USDT to Katibat Tawhid wal Jihad (KTJ) over seven transactions from August 2024 to April 2025.
- He is also accused of using cryptocurrency received from KTJ to buy and ship vehicles worth $121,000 to Syria.
South Korean authorities have detained four Uzbek nationals in a groundbreaking case of terrorism financing involving cryptocurrency. The arrests, made by the Gwangju Metropolitan Police Agency, were announced on Tuesday and follow an operation conducted under the Act on Prohibition Against the Financing of Terrorism.
The alleged leader of the group has been charged and is currently on trial, while the other three suspects remain under investigation but are not in custody. One of them is wanted under an Interpol Red Notice.
According to police reports, the ringleader conducted seven transfers amounting to 4,267 USDT to the terrorist organization Katibat Tawhid wal Jihad between August 2024 and April 2025. KTJ, which has been classified as a terrorist group by the UN and the US, is based in Syria and was established in 2014, primarily by Central Asian fighters.
Details of the Transactions
The suspect is further accused of converting cryptocurrency received from KTJ into funds used to purchase 11 used cars and two excavators, valued at 170 million won (approximately $121,000), which were then sent to Syria. The other three suspects are believed to have aided in this vehicle procurement and export.
"This case is unprecedented as it involves receiving funds from a terrorist organization and using them to acquire and send vehicles, differing from traditional terrorism financing methods," police officials stated.
Investigation details reveal that the ringleader used multiple personal wallets for transactions, redirected vehicle payments to an account under his spouse's name, and utilized someone else's driver's license at the time of his arrest. He entered South Korea on a student visa in 2017 and has been living there illegally since 2023.
During a hearing in June, he denied the charges, claiming the funds were meant for family expenses and asserting ignorance about the vehicle purchases. He also mentioned that a sibling had joined KTJ for self-defense amid violence against Uzbeks in Syria.
Authorities have noted that their investigation led to the arrest of another suspect with an Interpol Red Notice, and inquiries are ongoing.
