KARACHI: Police in Pakistan say the use of digital currencies, including bitcoin, for international terror financing, as well as crimes such as extortion and ransom, is on the rise as authorities move to crack down on illegal methods of money transfer.
Bitcoin is the most common virtual currency and is used as a vehicle for moving money around the world quickly and anonymously via the web without the need for third-party verification.
Militant groups worldwide, including Daesh, are increasingly calling on supporters to donate using the digital currency.
Pakistan recently moved to meet 27 targets set for it in 2018 when the South Asian nation was placed on a Financial Action Task Force (FATF) “grey list” of countries with inadequate controls over terror financing. The task force has urged Pakistan to complete an internationally agreed action plan by February 2021. The next virtual plenary of the task force is scheduled for February 22-25.
“We are seeing this trend (of using bitcoin for crimes) since we tightened the noose around illegal systems of transferring funds,” Raja Umar Khattab, head of the Transnational Terrorists Intelligence Group in Sindh’s counterterrorism police, told Arab News.
Last month, Khattab arrested Hafiz Muhammad Omar bin Khalid, a Pakistani engineering student charged with sending bitcoin donations to militants in Syria.
Khalid had transferred over Rs.1 million ($6,200) when he was caught, according to Omar Shahid Hamid, counterterrorism department (CTD) deputy inspector general.
The student had also previously been arrested, and released, in 2018 for extending financial support to an Al-Qaeda militant in Afghanistan, officials said.
In December 2019, Khalid came across a Telegram account online that guided him on how to help the widows of Daesh militants in Syria.
“Help jihadis and their families by sending money through bitcoin,” said one user on the Telegram group, leading Khalid down a rabbit hole of searches into bitcoin wallets. That, in turn, led him to an associate named Zia Shaikh Turk, based in Hyderabad, who converted cash into bitcoin and sent it off to “jihadi brides” in Syria, according to Hamid.
The Pakistani widow of a militant, whom Khalid identified as Umm-e-Bilal, also asked him to open a mobile wallet account, according to interrogation reports made available to Arab News.
“Umm-e-Bilal asked me to open an EasyPaisa (Pakistani digital payment system) account as some of her acquaintances hadn’t heard of bitcoins, but wanted to contribute,” one intelligence report said, quoting Khalid. “I got Rs. 450,000 into my account, added another Rs. 100,000 of my own, converted them into bitcoin and sent them to Syria.”
Last year, a US citizen of Pakistan origin, Zoobia Shahnaz, was sentenced to 13 years’ imprisonment for providing material support to foreign militant organizations, specifically more than $150,000 to Daesh.
Shahnaz, 27, from Long Island, admitted to wiring more than $150,000 to individuals and shell entities that were fronts for Daesh in Pakistan, China and Turkey in 2017. She was engaged in a scheme to scam Chase Bank, TD Bank, American Express and Discover by fraudulently obtaining six credit cards, according to a court filing. She then bought more than $62,703 in bitcoin and other cryptocurrencies, and converted them into cash.
An official at the Federal Investigation Agency (FIA) told Arab News the unit had received numerous complaints in recent months by victims asked to pay ransom and extortion in the form of bitcoin. The official did not go on the record as he was not authorized to discuss the cases with the media.
“Cryptocurrency has been used in international as well as local cases of extortion, kidnapping for ransom, harassment and money laundering as there is no centralized monitoring system,” the official said.
In December, a female student in Karachi was blackmailed by an unknown sender who had uploaded her private photos to a pornographic website and demanded Rs. 3 million in bitcoin to remove them. The FIA traced the case to a man in an African country who had hacked the girl’s Snapchat account and eventually taken control of her phone. The alleged blackmailer has since removed the pictures himself.
In another case, a truck contractor in Karachi told Arab News he got a call from an Afghanistan number by a man who knew where he lived and had intricate details of his family’s movements. The man demanded extortion money in bitcoin or else his family would be harmed. The trader declined to be named out of fear for his family’s safety, but said he eventually paid the money using digital currency.
Such cases have led to calls for a ban on virtual currencies in Pakistan, while advocates for regulation have also become more active.
Last month, Rehan Masood, a lawyer for the Pakistani central bank, told the Sindh High Court the state bank had issued a warning about dealing in cryptocurrencies but not banned them.
Pakistan’s central bank issued a circular dated April 6, 2018, advising financial institutions, including banks and payment service providers, “to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens.”
The circular said financial institutions “will not facilitate their customers/account holders to transact in VCs/ICO tokens. Any transaction in this regard shall immediately be reported to (the) Financial Monitoring Unit (FMU) as a suspicious transaction.”
TV host Waqar Zaka, an advocate for allowing cryptocurrency in Pakistan, who last January filed a court case against the FIA for arresting people for possessing bitcoin, described trading in virtual currencies as a fundamental right.
“Any ban will deprive Pakistanis of earning the biggest profits,” Zaka told Arab News. “The top countries on FATF have been dealing in cryptocurrency because they know that bitcoin doesn’t work without the Internet, which has a digital trace.”
Independent blockchain and cryptocurrency expert Hassan Raza agreed, saying a complete ban on blockchain-based payment networks should be “out of the question.”
“Terror financing is also done via the banking system, but those have not been banned,” he said, adding that the government should regulate digital tokens.
“Since every transaction in a public blockchain network like bitcoin is stored in a permanent and immutable distributed, public database, anyone is free to view them and conduct data analysis of any complexity on them,” Raza said.
“In fact, several people allegedly involved in illegal activity have been caught in this very manner.”
Crypto terror: Pakistan warns of digital currency crime spike
https://arab.news/6s6fg
Crypto terror: Pakistan warns of digital currency crime spike
- Militants push supporters to donate through bitcoin, police say amid crackdown
- Bitcoin is the most common virtual currency and is used as a vehicle for moving money around the world quickly and anonymously
A Russian strike on Kharkiv’s TV tower is part of an intimidation campaign, Ukraine’s Zelensky says
“Four priorities are key: defense of the sky, modern artillery, long-range capacity, and to ensure that packages of American aid arrive as soon as possible,” Zelensky said
KYIV: Ukrainian President Volodymyr Zelensky said a Russian missile strike that smashed a prominent skyline television tower in Kharkiv was part of the Kremlin’s effort to intimidate Ukraine’s second-largest city, which in recent weeks has come under increasingly frequent attack.
The strike sought to “make the terror visible to the whole city and to try to limit Kharkiv’s connection and access to information,” Zelensky said in a Monday evening address.
The northeastern Kharkiv region straddles the approximately 1,000-kilometer (600-mile) front line where Ukrainian and Russian forces have been locked in battle for more than two years since Moscow’s full-scale invasion of Ukraine. The front line has changed little during a war of attrition, focused mostly on artillery, drones and trenches.
Since late March, Russia has stepped up the pressure on Kharkiv, apparently aiming to exploit Ukraine’s shortage of air defense systems. It has pounded the local power grid and hit apartment blocks.
On Monday, a Russian Kh-59 missile struck Kharkiv’s 250-meter (820-foot) -high TV tower, breaking it roughly in half and halting transmissions.
A Washington think tank said Russia may be eyeing a ground assault on Kharkiv.
“The Kremlin is conducting a concerted air and information operation to destroy Kharkiv City, convince Ukrainians to flee, and internally displace millions of Ukrainians ahead of a possible future Russian offensive operation against the city or elsewhere in Ukraine,” the Institute for the Study of War said in an assessment.
The expected arrival in Ukraine in coming weeks of new military aid from its Western partners possibly has prompted Russia to escalate its attacks before the help arrives, the ISW said, adding that trying to capture Kharkiv would be “a significant challenge” for the Kremlin’s forces.
Instead, the Russian military command “may attempt to destroy Kharkiv City with air, missile, and drone strikes and prompt a large-scale internal displacement of Ukrainian civilians,” it said.
The US Senate was returning to Washington on Tuesday to vote on $61 billion in war aid to Ukraine after months of delays. Zelensky said US President Joe Biden assured him the aid would include long-range and artillery capabilities.
“Four priorities are key: defense of the sky, modern artillery, long-range capacity, and to ensure that packages of American aid arrive as soon as possible,” Zelensky said.
Also Tuesday, Britain pledged 500 million pounds ($620 million, 580 million euros) in new military supplies for Ukraine, including 400 vehicles, 60 boats, 1,600 munitions and 4 million rounds of ammunition.
The shipment will also include British Storm Shadow long-range missiles, which have a range of about 150 miles (240 kilometers) and have proven effective at hitting Russian targets, the British government said.
British Prime Minister Rishi Sunak spoke with Zelensky on Tuesday morning to confirm the new assistance. He was due to announce the aid later Tuesday during a visit to Warsaw where he was meeting with Polish Prime Minister Donald Tusk and NATO Secretary General Jens Stoltenberg.
Less cheering news came from the European Union, however. EU countries that have Patriot air defense systems gave no clear sign Monday that they might be willing to send them to Ukraine, which is desperately seeking at least seven of the missile batteries.
Ukraine’s army is also heavily outnumbered in the fight, and expanding the country’s mobilization has been a delicate issue.
Ukrainian Foreign Minister Dmytro Kuleba on Tuesday signaled that authorities plan to clamp down on young men of conscription age who have moved abroad, with details of the specific measures to be made public soon.
“Staying abroad does not relieve a citizen of his or her duties to the homeland,” Kuleba said on the social media platform X.
Meanwhile, Russia launched 16 Shahed drones and two Iskander-M ballistic missiles over Ukraine’s southern and central regions, the Ukrainian air force said Tuesday morning. It said all but one of the drones were intercepted.
In Odesa, an overnight attack injured nine people, regional Gov. Oleh Kiper said. Among those injured were two infants and two children aged nine and 12, Kiper said. City mayor Hennadii Trukhanov said 58 apartments in 22 buildings were damaged.
In other developments:
A Russian missile strike near Dnipro, Ukraine’s fourth-largest city, injured four people who were admitted to hospital, regional Gov. Serhii Lysak said.
Russian forces dropped a guided aerial bomb in Kostiantynivka, a city in the eastern Donetsk region, injuring five people who were riding in a car, police said. Two of them were in critical conditions.
Trump to meet with senior Japanese official after court session Tuesday in hush money trial
- “Leaders from around the world know that with President Trump we had a safer, more peaceful world,” said Trump spokesperson Brian Hughes
- Trump met last week with Polish President Andrzej Duda at Trump Tower and also met recently with British Foreign Secretary David Cameron and Hungarian Prime Minister Viktor Orbán
WASHINGTON: Former President Donald Trump is meeting with another foreign leader while he’s in New York for his criminal hush money trial.
The presumptive GOP nominee will host former Japanese Prime Minister Taro Aso at Trump Tower Tuesday, according to two people familiar with the plans who spoke on condition of anonymity because they had not been formally announced.
Aso is just the latest foreign leader to spend time with Trump in recent weeks as US allies prepare for the possibility that he could win back the White House this November.
“Leaders from around the world know that with President Trump we had a safer, more peaceful world,” said Trump spokesperson Brian Hughes in a statement. “Meetings and calls from world leaders reflect the recognition of what we already know here at home. Joe Biden is weak, and when President Trump is sworn in as the 47th President of the United States, the world will be more secure and America will be more prosperous.”
Trump met last week with Polish President Andrzej Duda at Trump Tower and also met recently with British Foreign Secretary David Cameron and Hungarian Prime Minister Viktor Orbán.
Trump was close with Shinzo Abe, the former Japanese prime minister who was assassinated in 2022. Aso is vice president of the Japanese Liberal Democratic Party and also served as deputy prime minister and finance minister under Abe.
Trump has threatened to impose broad new tariffs if he wins a second term.
Early Tuesday morning, he complained about the US dollar reaching a new high against the Japanese yen, calling it “a total disaster for the United States.”
“When I was President, I spent a good deal of time telling Japan and China, in particular, you can’t do that,” he wrote on his Truth Social platform. “It sounds good to stupid people, but it is a disaster for our manufacturers and others.”
The US dollar is trading at above 150 yen recently, up from 130-yen mark a year ago, which has made it more costly for Japan to import goods but has boosted exports.
President Joe Biden hosted current Japanese Prime Minister Fumio Kishida at the White House for talks and a state dinner earlier this month. During the visit, the leaders announced plans to upgrade US-Japan military relations, with both sides looking to tighten cooperation amid concerns about North Korea’s nuclear program and China’s increasing military assertiveness in the Pacific.
Bangladesh, Qatar sign 10 cooperation deals during emir’s first Dhaka trip
- Agreements cover investment, maritime transport and establishment of joint business council
- Bangladeshi president invited Qatar’s emir to invest in the country’s special economic zones
DHAKA: Bangladesh and Qatar signed 10 cooperation agreements on Tuesday as the Gulf state’s Emir Sheikh Tamim bin Hamad Al-Thani made his first official visit to Dhaka.
Prime Minister Sheikh Hasina and Sheikh Tamim witnessed the signing ceremony, which covered deals on investment, maritime transport, taxation, legal affairs and the establishment of a Bangladesh-Qatar joint business council.
The two countries also signed several memoranda of understanding, including on diplomatic training, education, labor, youth and sports, as well as port management cooperation.
Sheikh Tamim then held a meeting with President Mohammed Shahabuddin as part of his visit to Bangladesh, which is the second stop in the emir’s Asia tour that began in the Philippines on Sunday.
During their talks, Shahabuddin invited Qatar to invest in Bangladesh’s special economic zones.
“Bangladesh will welcome investments in various sectors including in state-led food supply chains from production to consumption such as agro-production and processing, food packaging, smart agriculture and fertilizer production,” Shahabuddin’s press secretary Joynal Abedin told reporters after the meeting.
“Qatar investors can get massive incentives and support in sectors like petrochemicals, energy, machineries, information technology, electronics, ceramics, agri-business, and food processing in Bangladesh.”
Shahabuddin also urged Sheikh Tamim to recruit more skilled workers from Bangladesh during their talks, Abedin said.
Qatar is currently the largest supplier of liquefied natural gas to Bangladesh. Earlier this year, the emirate signed a 15-year agreement with the US-based Excelerate Energy to supply 1 million metric tons per year of LNG to Bangladesh starting from January 2026.
The Gulf state is also home to about 400,000 Bangladeshis who live and work there, as it is one of the preferred destinations for migrant workers from the South Asian country.
India’s Modi calls rivals pro-Muslim as election campaign changes tack
- Modi has accused Congress of having an election plan to redistribute wealth of Hindus among Muslims
- Modi’s government has repeatedly been accused of discrimination against India’s estimated 200 million Muslims
NEW DELHI: Indian Prime Minister Narendra Modi and his Hindu nationalist party have begun attacking opposition rivals, saying they favor minority Muslims, in what analysts see as a bid to invigorate their hard-line base after general elections began last week.
India began voting on Friday in a seven-phase election at which Modi seeks a rare third consecutive term, with campaigning that had so far largely focused on his record of growth and welfare as well as his personal popularity.
But in a speech on Sunday, Modi referred to Muslims as “infiltrators” who have “more children,” linking the comment to what he called an election plan of the main opposition Congress party to redistribute the wealth of Hindus among Muslims.
The Congress denied making any such promise and petitioned the Election Commission to act against Modi, who surveys suggest will win a comfortable majority, though analysts say his party wants to avert possible voter fatigue and overconfidence.
The controversial remarks were an unusual “deviation” from Modi’s usual practice as he rarely targets Muslims directly, said Hilal Ahmed, a political analyst at Delhi’s Center for the Study of Developing Societies.
They followed low voter turnout in areas where the BJP had done well in 2019, he added.
“The low turnout simply means that the committed BJP voter has not yet come out,” Ahmed said. “They obviously want the committed voter to come out. That is the reason for this deviation.”
The comment on redistribution of wealth to Muslims was supported and amplified on Monday by BJP members, including Modi’s powerful cabinet colleague, Home Minister Amit Shah, who mentioned it in a campaign speech.
Modi aired the claim again on Tuesday, a day after speaking about the gains Muslims have made during his 10-year rule.
In the southern state of Karnataka, half of which votes on Friday in the second phase of elections, BJP members have staged protests against last week’s murder of a Hindu woman by a Muslim man.
They say the incident is an instance of “love jihad,” a term Hindu groups use to accuse Muslim men of waging a campaign that lures Hindu women to convert to Islam with promises of marriage.
EXPOSING OPPOSITION, BJP SAYS
Modi’s government has repeatedly been accused of targeting and discrimination against India’s estimated 200 million Muslims, who form the world’s third-largest Muslim population.
The government has denied all accusations, and Modi has said he works for the betterment of all.
“Stating facts and exposing the flawed strategy of the opposition is our job,” BJP president J.P. Nadda told Reuters, when asked about Modi’s weekend comments.
But he said the BJP remained committed to its slogan of betterment, underlining reforms pushed by Modi’s government to help Muslim women and the poor among the community.
Another senior BJP leader and member of the party’s central election panel said Modi’s Sunday comments should not be seen as “polarizing,” as he had only reminded voters about the “Muslim-first strategy” of Congress and its allies.
He spoke on condition of anonymity as he was not authorized to speak to the media.
In January, Modi inaugurated a grand temple to the Hindu god-king Lord Ram on a once-disputed site believed to be his birthplace, fulfilling a longstanding promise projected by the BJP as a symbol of Hindu rejuvenation.
In campaign speeches Modi refers to the temple, but he has focused more on his development and welfare record and national pride to counter the opposition focus on joblessness, price rise and rural distress in the world’s fastest growing major economy.
“When the campaign started, the focus was entirely on development, welfare, reaching out to marginalized people and Hindutva came last,” said analyst Ahmed, referring to the Hindu nationalism espoused by the BJP.
“After the first phase, they realized they need to go back to their own voters ... back to the basics.”
16 dead, 28 missing in migrant boat capsize off Djibouti: UN
- The accident occurred about two weeks after another boat carrying mainly Ethiopian migrants sank off the Djibouti coas
NAIROBI: At least 16 people are dead and 28 missing in a new migrant boat disaster off the coast of the Horn of Africa nation of Djibouti, the UN’s International Organization for Migration said on Tuesday.
The accident occurred about two weeks after another boat carrying mainly Ethiopian migrants sank off the Djibouti coast, claiming several dozen lives.
“Tragedy as boat capsizes off Djibouti coast with 77 migrants on board including children,” the IOM said in a post on X, without specifying when the latest incident occurred.
“At least 28 missing. 16 dead,” it said, adding that the local IOM branch was “supporting local authorities with search and rescue effort.”
It was the latest deadly accident on the so-called Eastern Migration Route.
Another boat carrying more than 60 people sank off the coast of Godoria in the northeast of Djibouti on April 8, according to the IOM and the Ethiopian embassy in Djibouti.
The IOM said at the time the bodies of 38 migrants, including children, were recovered, while another six people were missing.
The embassy in Djibouti said the boat was carrying Ethiopian migrants from Djibouti to war-torn Yemen.
Each year, many tens of thousands of African migrants brave the perilous “Eastern Route” across the Red Sea and through war-scarred Yemen, escaping conflict or natural disaster, or seeking better economic opportunities.
