Image created by AI

South African Man Faces Court Over R11,500 Bitcoin Transfer Linked to Alleged Terror Financing

Published January 13, 2025
1 months ago

In a recent development that highlights the ongoing challenges associated with cryptocurrency and law enforcement, Ziyadh Hoorzook, a 35-year-old South African, was arraigned at the Lichtenburg Magistrates Court facing charges of terror financing.





The Directorate for Priority Crime Investigation (Hawks) has accused Hoorzook of transferring bitcoins valued at approximately R11,500 to an organization with purported terrorist connections back in 2017. This case underscores broadening concerns regarding the misuse of digital currencies in activities that threaten global security.


Initiated by a tip-off in May 2018, the investigation by the Hawks and the Financial Intelligence Centre (FIC) meticulously tracked down the financial activities of Hoorzook. The purchased bitcoins were allegedly transferred from his account at Luno—a well-known South African crypto exchange—to another wallet deemed to be associated with a non-profit organization. This entity, which identifies itself as an independent charity, is believed to support armed conflicts in foreign territories.


Following extensive investigations, law enforcement raided Hoorzook's Sandton residence on October 3, 2024, leading to the seizure of various items and revealing unsafe firearm storage, further complicating his legal woes.


During his bail hearing on January 10, 2025, Hoorzook maintained his innocence, labeling the charges as exaggerated and misaligned with facts. His case brings to light the intricate link between digital currencies and the financing of illegal activities.


This arrest occurs against a backdrop of intensified scrutiny by global and local authorities towards tightening cryptocurrency regulations. In 2023, South Africa was greylisted by the Financial Action Task Force (FATF) due to deficiencies in combating money laundering and terrorism financing. The subsequent regulatory actions, including the enactment of Directive 9 that enforces FATF’s “travel rule,” reflect ongoing efforts to curb the illicit use of virtual assets.


The FATF highlighted significant gaps in South Africa's frameworks, which have been partially addressed according to recent reports by the National Treasury. They have sought public opinion on proposed amendments that aim to enhance the legislative environment concerning money laundering and terrorism financing. These proposed laws include increased penalties and extended regulatory oversight, aligning with international standards to combat the financing of global terrorism effectively.


As South Africa continues to address the remaining deficiencies noted by the FATF, the case against Hoorzook will likely serve as a critical reference point for assessing the country's resolve and capabilities in managing the complexities associated with cryptocurrencies and their potential misuse in activities that undermine national and global security.


Leave a Comment

Rate this article:

Please enter email address.
Looks good!
Please enter your name.
Looks good!
Please enter a message.
Looks good!
Please check re-captcha.
Looks good!
Leave the first review