Dutch authorities arrest suspect for financing terrorist groups with Bitcoin

Dutch fiscal authorities have arrested a 32-year-old man from North Holland on suspicion of terrorist financing and sanctions violations, according to a 27 March announcement from the Fiscal Information and Investigation Service (‘FIOD’).

The investigation was launched after a cryptocurrency exchange reported unusual transactions to the Financial Intelligence Unit (‘FIU’).

‘With the help of current (crypto analysis) technology and knowledge, further investigation by the FIOD revealed that the suspect sent bitcoins on several occasions in 2020 and 2022 that probably ended up with terrorist organizations,’ the agency said.

The suspect’s home was searched during the arrest, with authorities seizing mobile phones and other digital data carriers. Europol supported the investigation by analysing data and facilitating international cooperation between countries.

FIOD noted that terrorist financing using Bitcoin ‘has become increasingly common worldwide in recent years’, citing criminal investigations in Europe and the United States that have shown terrorist groups including IS and Al Qaeda to be actively collecting cryptocurrencies from individuals.

‘It also happens that terrorist organizations, among other things, pose as aid organizations when collecting bitcoins, but ultimately the bitcoins end up in the hands of terrorists,’ the agency warned.

The investigation is being led by the Dutch Public Prosecution Service, which considers terrorism ‘one of the most serious crimes’ as it ‘directly affects public order and/or the safety and stability of a society and its citizens.’

https://www.fiod.nl/aanhouding-vanwege-terrorismefinanciering-met-bitcoins