‘No genuine basis to oppose bail’: Man accused of funding terrorism using Bitcoin claims case is overblown

A 35-year-old South African man accused of financing terrorism using Bitcoin cryptocurrency says the case against him has been exaggerated.

Ziyadh Hoorzook made his second appearance at the Lichtenburg Magistrate’s Court in North West on Friday, seeking bail.

His first court appearance was earlier in the week on Monday.

Hoorzook was arrested at his Johannesburg home on Friday, 3 January, following a lengthy investigation by the Directorate for Priority Crime Investigation (DPCI), known as the Hawks.

He faces charges under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA).

Alleged Bitcoin terrorism financier applies for bail

In an affidavit presented by his legal representative, Hoorzook criticised the state’s opposition to his bail application, arguing that it lacked substance beyond the seriousness of the charges.

“This factor should not be a ground of opposition to bail,” he stated.

Hoorzook accused state prosecutor Rodger Mareume of acting unreasonably, claiming there was no legitimate basis for denying him bail.

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“By a prosecutor acting rationally within the scope of his or her prosecutorial mandate, I interpret this basis of opposition to mean that there is no genuine basis for the opposition to bail.

“I intend pleading not guilty to the charges against me, and I will deal with the merits of this matter to the best of my knowledge despite having the disadvantage of a full docket disclosure,” his affidavit reads.

‘Case blown out of proportion’

He further argued that the state’s allegations were flawed and the case against him overstated.

“The court will take judicial notice from my affidavit that I have taken a lot of responsibility in these proceedings and I have gone through great lengths to put forward as informative set of papers before this honourable court.

“I do so as I am of the view that the state is mistaken in the allegations against me and has blown this matter out of proportion.

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“I provide a reasonably possibly true version which may even serve as representations on the matter,” Hoorzook argued.

The suspect further highlighted that he has cooperated with law enforcement since he was made aware of the allegations against him.

“I have done so to demonstrate to this honourable court that I respect the criminal justice system and naturally the institution of bail.”

Probe into terrorism financing after Bitcoin transfer

The investigation into Hoorzook began in May 2018 when the Financial Intelligence Centre (FIC) and the Hawks were alerted to suspicious transactions potentially linked to terror financing.

It is alleged that Bitcoin worth R11 500 was purchased through Luno, a South African cryptocurrency exchange and wallet provider, after Hoorzook transferred funds from his bank account.

This transaction took place on 30 November 2017.

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According to the Hawks, on the same day, the Bitcoin was transferred from Hoorzook’s Luno wallet to one associated with an organisation that identifies itself as an “independent charity.”

The probe further suggested that this non-profit organisation (NGO) is connected to two other organisations.

The preliminary investigation uncovered that the transfer was made in response to a request for financial support for activities involving weapons, financial aid, and other projects aiding participants in a foreign country.

Search-and-seizure leads to arrest

On 3 October 2024, the police, armed with a search warrant, conducted a search at Hoorzook’s residence in Sandton.

Several pieces of evidence were seized for further investigation.

Additionally, the search revealed that two of Hoorzook’s licensed firearms were not secured in a safe as required by law, prompting the opening of a relevant case docket and leading to his arrest.

South Africa was placed on the Financial Action Task Force (FATF) greylist in early 2023 due to deficiencies in its efforts to combat money laundering and the financing of terrorism.

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