South Korea’s Gwangju Metropolitan Police Agency said its security investigation unit arrested four Uzbek nationals in April under the Act on Prohibition Against the Financing of Terrorism, and disclosed the case on Tuesday. One suspect was listed on an Interpol Red Notice.
Police call it a first-of-its-kind crypto-linked case
Police said this was the first case involving cryptocurrency flowing out of a designated terrorist organization and then returning as support through physical goods. They said past terror financing cases typically involved money being sent to terrorist groups, while this case allegedly involved funds received from a terrorist organization and used to procure and supply vehicles.
4,267 USDT allegedly transferred to KTJ
According to the investigation, the alleged ringleader transferred 4,267 USDT to the Syria-based terrorist organization Katibat Tawhid wal Jihad, or KTJ, in seven transactions between August 2024 and April 2025. KTJ was founded in 2014, is made up mainly of Central Asian militants, and has been designated as a terrorist organization by the United Nations and the United States.
Used cars and excavators allegedly shipped to Syria
Police also accused the main suspect of receiving cryptocurrency from KTJ and using it to purchase 11 used cars and two excavators worth about 170 million won, or roughly $121,000, which were then shipped to Syria. The other three suspects allegedly helped purchase and export those vehicles.
Investigators detail wallet and account activity
Investigators said the suspect rotated transactions across three personal wallets. Funds used for the vehicle purchases were deposited into an account under his spouse’s name, and he presented another person’s driver’s license at the time of his arrest.
Police said he entered South Korea in 2017 on a student visa, graduated from a university in Daejeon, and had been staying in the country illegally since 2023.
Suspect denied key allegations in court
At his first court hearing in June, the suspect denied the main allegations, saying the transfers were for family living expenses and that he did not know the identity of the buyer of the vehicles.
Police said the investigation also led to the arrest of a second Red Notice suspect. The case remains under investigation.