South Korea Cracks Down on Crypto-Funded Terrorism
South Korean authorities have arrested four Uzbek nationals for allegedly financing terrorism through cryptocurrency transactions. The suspects, including one wanted on an Interpol Red Notice, were detained in April under the Act on Prohibition Against the Financing of Terrorism.
The alleged ringleader sent approximately $121,000 worth of USDT to the UN-designated terrorist group Katibat Tawhid wal Jihad between August 2024 and April 2025. He is accused of also receiving cryptocurrency from KTJ and using it to purchase and ship vehicles to Syria.
The case marks the first instance in South Korea where cryptocurrency has been used to finance terrorism, with funds flowing out of a designated terrorist group and back as physical goods. The ringleader had entered South Korea on a student visa in 2017 and graduated from a university in Daejeon before overstaying his visa since 2023.
Police said the investigation led to the arrest of a second Interpol Red Notice suspect and is continuing.