South African authorities arrest a man suspected of using Bitcoin to fund terrorist activities

ChainCatcher news, according to News.bitcoin, a law enforcement agency in South Africa recently arrested a 35-year-old man who is suspected of using cryptocurrency to fund terrorist activities. The investigation was initiated in May 2018 when the Financial Intelligence Centre (FIC) and the investigation team received information about suspicious transactions related to alleged terrorist financing.

It is alleged that on November 30, 2017, the suspect purchased $614 worth of Bitcoin through the virtual asset service provider Luno, transferring funds from the suspect's bank account to Luno's custodial account. Subsequently, the Bitcoin was transferred to another wallet associated with an unnamed "independent" organization.

South African law enforcement stated that preliminary investigations indicated that these funds were transferred to provide weapons, economic assistance, and other projects to "participants" in another country. After determining the use of the funds, South African law enforcement executed a search warrant at the suspect's residence on October 24, seizing multiple items, including firearms that were not securely locked as required by law. The man is expected to appear in the Lichtenburg Magistrate's Court on January 6.