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Cryptocurrency terror funding case – ‘tip of the iceberg’

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The case of a Sandton man accused of using Bitcoin to finance terrorist activities has highlighted South Africa’s escalating security threat, experts warned this week.

Terror-financing accused, Ziyadh Hoorzook, 35, appeared before the Lichtenburg Magistrate’s Court in North West this week to apply for bail. He faces a charge of contravening the Protection of Constitutional Democracy Against Terrorist and Related Activities Act.

Hoorzook was arrested at his home in Johannesburg in the first week of 2025 following a lengthy investigation that began in 2018 when the Financial Intelligence Centre and the Hawks received information about suspicious transactions allegedly linked to terror financing.

He allegedly donated R11 500 to Al-Sadaqah, a Syrian organisation investigated by United States authorities for financing “Al-Qaeda and affiliated foreign terror organisations” through the use of cryptocurrency.

Said Hawks spokesperson Colonel Philani Nkwalase, “Cryptocurrency in the form of Bitcoin worth R11 500 was allegedly purchased, through Luno, a virtual asset service provider, via transfer of money from the accused’s bank account to Luno’s custody account on 30 November 2017. On the same day, Bitcoin was reportedly transferred from the suspect’s Luno wallet to the wallet associated with an organisation that describes itself as an independent charity.”

The charity in question was linked to two other organisations, the Hawks said.

“Preliminary investigation revealed that the transfer was a response to an advertisement appealing for financial support of [terrorist] activities with weapons, financial aid, and other projects assisting the participants in another country,” said Nkwalase.

According to US authorities, Al-Sadaqah is allegedly used as a vehicle to finance weapons purchases and forms part of Al-Qaeda’s network of fundraising organisations.

In Hoorzook’s court appearance on Friday, he claimed that Al-Sadaqah wasn’t listed as a terrorist organisation when he donated R11 500 to it in 2017.

During his bail application, his lawyer, Mohammed Razak, read into the record his client’s affidavit in which he denied funding a terrorist organisation through the use of Bitcoin. He said he was aware of several initiatives to support the people of Syria who were subjected to human rights violations.

Although the money involved is insubstantial, experts agree that his arrest is a step in the right direction. “We’re pleased to see the Hawks and police taking the correct action against terror financing, which remains a grave concern in South Africa,” said Liron Sanders, the director of the Community Security Organisation in Johannesburg.

“However, it’s worrying that this case appears to be just the tip of the iceberg in the broader landscape of terror funding. The value and size of the donation the accused allegedly facilitated through Bitcoin is small, and the time it has taken to get to this point is worrying. Nonetheless, this marks a small but significant step in the right direction, potentially leading to further arrests of those involved in terror financing,” he said.

“What’s hugely concerning is the extremist material found in the accused’s possession, including content about Osama bin Laden, Al-Qaeda leaders, and other radical groups. Extremist material, such as videos and speeches by Bin Laden, were allegedly among the items discovered on electronic devices. This highlights the dangerous ideologies at play and underscores the urgency of addressing this threat comprehensively,” Sanders said.

According to newspaper reports, Warrant Officer John Sithole of the Hawks told the court he had found evidence on Hoorzook’s electronic devices that showed that he knew his money was destined for a terrorist organisation aiming to commit terror-related activities in Syria.

Extremist material such as videos, images, articles, and speeches by well-known Al-Qaeda leader Bin Laden were among the items found, he said.

According to Sithole, more material emanating from groups such as Al-Shabaab, Al-Qaeda, and the Islamic State of Iraq and Syria were also found on Hoorzook’s electronic devices.

He said he could confirm that the material downloaded from Hoorzook’s devices, including three Al-Sadaqah advertisements, illustrated he knew about the group’s activities.

“The three above-mentioned adverts by Al-Sadaqah found on the accused’s cellphone clearly demonstrate the knowledge of wrongfulness by the accused. It further tells us that Al-Sadaqah isn’t a charity organisation and that the accused was clearly aware that the funds were to be used for terror activities,” Sithole said.

Terrorism financing from South Africa has become a pressing matter, with the 2024 SA National Terrorism Financing Risk Assessment identifying the country as a high-risk zone.

South Africa was greylisted by the global financial crime watchdog Financial Action Task Force in February 2023 for not complying with international standards around the prevention of money laundering, terrorist financing, and proliferation financing.

Professor Glen Segell, who writes about terrorism in Africa, urged South African authorities to act swiftly in addressing these crimes. “Global efforts to curb terror financing depend on the willingness and swift action of each country. Most do so as terror affects their economy adversely. So, South Africa dragging its heels in this case is somewhat puzzling.”

Willem Els, senior training co-ordinator at the Institute for Security Studies, agreed, saying that this case represents only the surface of a much wider problem, but marks a positive move forward.

“We have been found not to curb terror funding and money laundering effectively. That’s why we were greylisted. However, South Africa has been working hard to meet all the obligations, and has made some good progress. We’re not there yet.”

He said South Africa was being forced to act against this illicit activity, and he believed there would be quite a few more prosecutions in the near future.

“If they can bring down this case and successfully prosecute this guy, it will demonstrate to others out there that there will be consequences for these acts because terror funding has been criminalised in our legislation,” Els said.

Hoorzook’s bail hearing was continuing at the time of going to print.

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