South Korea’s Metropolitan Police of Gwangju have arrested four Uzbek nationals in what authorities describe as the country’s first criminal case involving cryptocurrency used to finance terrorism.
The alleged ringleader is accused of sending 4,267 USDT in seven transactions between August 2024 and April 2025 to Katibat Tawhid wal Jihad (KTJ), a Syria-based organization designated as a terrorist group by both the United Nations and the United States.
Authorities said the case is notable for a reverse flow of funds: the same individual allegedly received cryptocurrencies from KTJ and used them to purchase and export 11 used cars and two excavators with a combined value of $121,000 to Syria. The other three detainees are accused of assisting in the purchase and export of the vehicles.
The arrests were carried out in April by the security investigation division under South Korea’s Act on Prohibition of Financing for Terrorism. One of the four accused appeared on an Interpol red notice. The suspected ringleader, who entered South Korea on a student visa in 2017, denied the main charges at a hearing in June, saying the funds were used for family expenses and that he did not know the vehicles’ final destination.
