Dodgy Bitcoin transfer to a ‘charity’: Hawks arrest alleged Joburg terror financing suspect

A South African man was apprehended at his Johannesburg residence on Friday following an extensive investigation that began in May 2018, when the Hawks and Financial Intelligence Centre (FIC) identified suspicious transactions allegedly linked to terror financing.

The suspect faces charges under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (Pocdatara).

He will appear in the Lichtenburg Magistrates Court on Monday.

His arrest comes after a comprehensive investigation that began in May 2018 when authorities detected suspicious financial transactions.

Terror financing Bitcoin transaction details

According to investigators, the suspect purchased Cryptocurrency in the form of Bitcoin worth R11,500 through Luno, a Virtual Asset Service Provider (Vasp), 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, which describes itself as an independent charity,” police spokesperson Colonel Philani Nkwalase added.

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Links to international organisations

Nkwalase said that the recipient non-profit organisation is allegedly linked to two other entities.

“Preliminary investigation revealed that the transfer was a response to the advisement appealing for financial support of the activities with weapons, financial aid, and other projects assisting the participants in another country,” he stated.

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Hawks search and seizure operation uncovers firearms

“The police obtained a search warrant and on October 3, 2024, searched the residence of the suspect in Sandton.

“Several evidential materials have been seized for further investigation,” said Nkwalase.

He noted that during the search, authorities discovered two licensed firearms that weren’t properly secured in a safe as required by law, leading to additional charges.

Hawks committed to busting terror financing

Hawks Head Lieutenant General (Dr/Adv) Godfrey Lebeya emphasised the organisation’s dedication to fighting financial crimes.

“Our dedicated team in collaboration with local and international partners are working as a collective to halt the illicit flow of funds that fuel organised crime and terrorism,” said Lebeya.

He added that the Hawks remain committed to combating money laundering and terror financing in alignment with the Financial Action Task Force (Faft) standards.

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