Foreign nationals arrested for funding terrorist group with crypto

The National Police Agency building in Seodaemun District, western Seoul [NEWS1]

Two foreigners residing in Korea have been arrested for allegedly providing financial support to a terrorist organization through cryptocurrencies.

A 31-year-old Uzbekistan national and 29-year-old Kazakhstan national were arrested and referred to prosecutors last month on charges of violating Korean laws against the financing of terrorist organizations, according to the National Police Agency on Thursday.

This is the first time that Korean authorities have charged resident foreigners with helping a terrorist organization with cryptocurrencies instead of cash.

Seven accomplices allegedly helped the two suspects. Five were deported in December, while the other two are undergoing deportation procedures.

According to the police, the 31-year-old man is accused of gathering 10 million won ($7,700) in cash from his fellow accomplices in towns like Yeongam, South Jeolla and exchanging it into USDT, a type of cryptocurrency, through a cryptocurrency exchange in Hong Kong.

The man, who arrived in Korea as a refugee in 2018, funded a terrorist organization called Katibat al Tawhid wal Jihad, or KTJ.

Meanwhile, the 29-year-old man came to Korea in 2019 and is also accused of exchanging 1 million won of cryptocurrencies to help KTJ.

KTJ, an anti-Syrian government terrorist group affiliated with Al-Qaida, was designated a terrorist organization by the United Nations last year.

The organization is suspected of masterminding a terrorist attack against the Chinese Embassy in Bishkek, Kyrgyzstan in 2016 and a metro bombing in Saint Petersburg in 2017.

Some members of the organization have reportedly tried to enter Korea to receive support from other foreign nationals affiliated with the organization over the past few years.

“There have been similar cases discovered over the last couple of years, so more related crimes will likely be found,” the police said.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]