The Gwangju Metropolitan Police Agency has arrested four Uzbek nationals on charges of involvement in terrorism financing. The arrest marks South Korea’s first case uncovering a two-way digital asset flow, where cryptocurrency was not merely sent as donations, but flowed back from a terrorist group to the suspects to cover operational expenses.
The main suspect’s track record began with sending 4,267 USDT across seven transactions to the Katibat Tawhid wal Jihad (KTJ) organization between August 2024 and April 2025. His role shifted shortly after, as he began receiving crypto funds from the same group to carry out on-the-ground procurement.
Buying Excavators Bound for Syria
The crypto funds received from KTJ were directly used by the primary suspect to purchase 11 used cars and two excavators. The vehicle purchases, valued at 170 million won or approximately $121,000, were completed in South Korea before the units were exported to Syria. Three other Uzbek nationals were detained by police for their roles in assisting with transactions, documentation, and shipping routes to the conflict zone.
The operation’s logistics chain was tightly guarded to evade detection. The ringleader cycled funds through three rotating crypto wallets and funneled his operational payments into a bank account under his wife’s name. Having arrived in South Korea on a student visa in 2017, the man graduated from a university in Daejeon before becoming an undocumented immigrant (overstayer) in 2023. At the time of his arrest, police found he was using another person’s SIM card to conceal his tracks.
Catching Two Interpol Fugitives
KTJ is a militant group in Syria founded in 2014 by Central Asian fighters. The group is officially designated as a terrorist organization by both the United Nations and the United States government. Among the four men apprehended by authorities in Gwangju, one turned out to be an Interpol red notice fugitive.
The police investigation into the suspects’ crypto transaction history quickly led authorities to further breakthroughs. Expanding the case resulted in the arrest of a second Interpol red notice fugitive who had previously stayed off the radar. Despite authorities possessing evidence of the financial flows and export manifests, the primary suspect denied all core charges during his first trial in June 2026.
Reported via Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
