South African Man Accused of Funding Terrorists with Bitcoin Granted Bail
Court Rules Accused Is Not a Flight Risk
A South African man accused of transferring
(BTC) worth approximately $600 to an Islamic State-linked group in Syria has been granted bail after a court ruled that he does not pose a flight risk. According to local reports, a Lichtenburg magistrate approved Ziyadh Hoorzook’s bail application, setting the amount at 30,000 rands ($1,616).
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South African authorities had opposed Hoorzook’s bail, arguing that he might use the opportunity to evade trial. However, the court determined that the prosecution failed to provide sufficient evidence to support this claim. Hoorzook, who denies the allegations, asserts that he was unaware that the Syrian charity he donated to had connections to terrorist organizations.
Although the alleged transaction took place in 2017, law enforcement only apprehended Hoorzook earlier this year. He now faces charges under South Africa’s Protection of Constitutional Democracy and Related Activities Act.
Criticism and Broader Implications
Critics argue that arresting and prosecuting Hoorzook over a donation of less than $1,000 is excessive. However, legal experts believe the case could strengthen South Africa’s efforts to be removed from the Financial Action Task Force (FATF) grey list.
Since being added to the FATF grey list in February 2023, South African authorities have intensified efforts to combat financial crimes, particularly those involving cryptocurrencies. Recently, the government introduced measures requiring crypto exchanges to collect personal data from parties involved in digital asset transactions.
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Some analysts suggest that Hoorzook’s case is being used as a demonstration of the government’s commitment to tackling terrorism financing. Willem Els, a security expert at the Institute for Security Studies (ISS), emphasized that South Africa has been identified as a hub for terrorist funding.
“South Africa has long been known as a hotspot for terrorism financing. The U.S. Treasury has already sanctioned six individuals in the country for this, and local authorities are actively working to address the issue,” Els stated.
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With the international spotlight on South Africa’s financial regulations, the outcome of this case could have significant implications for the country’s standing with the FATF and global financial institutions.
