Uzbek Nationals Arrested in South Korea for Crypto-Financed Vehicle Shipments to Syria

South Korean authorities have arrested four Uzbek nationals in Gwangju on charges of financing a terrorist group via cryptocurrency. This marks what police claim is the country's first case of crypto sent from a terrorist-designated organization being used to purchase and export physical goods.

The suspects, who were detained in April under the Act on Prohibition Against the Financing of Terrorism, allegedly received 4,267 USDT from Katibat Tawhid wal Jihad (KTJ), a Syria-based militant group recognized as a terrorist organization by both the United Nations and the United States.

According to police, the ringleader used this cryptocurrency to purchase 11 used cars and two excavators worth a total of 170 million won ($121,000). The vehicles were then shipped to Syria. One suspect claimed that he did not know the ultimate destination of the vehicles and said relatives had connections to KTJ only out of safety concerns.