[South Korea Uncovers 'Crypto-to-Goods' Terror Funding Chain: 4 Uzbek Nationals Arrested] BlockBeats reports that on September 1, the Gwangju Police Agency in South Korea announced the arrest and indictment of four Uzbek nationals on charges of allegedly providing funds to the United Nations-designated terrorist organization 'Katibat al-Tawhid wal-Jihad' (KTJ) through cryptocurrency. The four individuals were arrested in April this year for allegedly violating South Korea's 'Act on Prohibition Against the Financing of Terrorism.' One of the suspects, identified as the ringleader, had previously been issued a Red Notice by Interpol. According to the police, between August 2024 and April 2025, the ringleader transferred a total of 4,267 USDT to KTJ through seven transactions. Additionally, the suspect is accused of receiving cryptocurrency from KTJ and using the funds to purchase 11 used cars and 2 excavators, with a total value of approximately 170 million KRW (about $121,000). These vehicles and equipment were then shipped to Syria. The other three suspects are alleged to have assisted in the procurement and export process. South Korean police noted that previous terrorism-related cases primarily involved one-way transfers of funds to terrorist organizations. However, this case marks the first discovery of a 'funding loop' where cryptocurrency is received from a terrorist organization and returned in the form of physical goods. The ringleader has denied the primary charges, claiming the funds were used for family living expenses and that he was unaware of the actual buyers of the vehicles. [Original Link]