South African Man Granted Bail in Bitcoin Terror Financing Case

Authorities investigate alleged cryptocurrency transactions linked to extremist activities.

A South African man accused of financing terrorism with Bitcoin has been granted bail. Ziyadh Hoorzook is accused of paying R11,500 in Bitcoin to support members of the Islamic State in Syria.

The Lichtenburg Magistrates Court set bail at R30,000 on Monday after the prosecution failed to show sufficient grounds for keeping Hoorzook in custody.

According to Hawks spokesperson Colonel Philani Nkwalase, authorities began investigating Hoorzook as part of a broader probe into cryptocurrency payments linked to terrorism, which began in May 2018.

Nkwalase said the Financial Intelligence Centre (FIC) picked up suspicious transactions that could be linked to financing terrorism activities.

“On 30 November 2017, Hoorzook transacted funds in Bitcoin using the Luno Virtual Asset Service Provider. Those funds were sent from Hoorzook’s bank account to an account belonging to Luno, and those Bitcoin were used to fund an organisation that owned the wallet,” Nkwalase said.

Hoorzook allegedly used Bitcoin to pay members of the Islamic State in Syria (File photo).

Forensic evidence links Bitcoin transactions to terror financing

Hoorzook, who is out on bail, has maintained that the al-Sadaqah group appeared to be a legitimate charity. He testified that an Islamic figure introduced him to the organisation, recommending it for providing relief in the Syrian conflict.

However, al-Sadaqah was later designated a terrorist-linked group, a fact that Hoorzook said he was not aware of at the time.

Warrant Officer John Sithole, who led the investigation, disputed Hoorzook’s claims, arguing that the prosecution had compelling evidence against him.

“A forensic examination of Hoorzook’s electronic devices revealed a substantial amount of material linked to extremism,” Sithole said.

During the investigation, law enforcement officials found violent media files and recordings of Osama bin Laden on Hoorzook’s devices.

Sithole added that three al-Sadaqah advertisements were also found on Hoorzook’s devices, which explicitly stated that the organisation did not operate as a charity.

“This evidence, according to the Hawks, shows that Hoorzook must have known that the funds he was paying would be used for terrorism activities,” Nkwalase said.

The investigation is ongoing, with authorities gathering more information. The legal decision will hinge on whether Hoorzook had knowledge of the group’s activities and his intentions when providing funds for their operations.

This case is being closely monitored by law enforcement and financial regulatory bodies in South Africa.