Swedish Law Enforcement Secures First Conviction Under New Terrorism Financing Law

Swedish Law Enforcement Secures First Conviction Under New Terrorism Financing Law

In a landmark case, Swedish authorities secured a conviction under a newly expanded terrorism law, sentencing a 22-year-old man to three years in prison for financing terrorism and participating in a terrorist organization. According to press reports, the individual had traveled to Somalia multiple times, pledged allegiance to ISIS, and upon returning to Sweden, continued supporting the terrorist group, including by sending cryptocurrency to ISIS-affiliated fundraising campaigns. 

TRM Labs is proud to have supported Swedish law enforcement in this investigation, which led to one of the first convictions in the country for terrorism financing via digital assets.

The Swedish case is not an isolated incident. As explained in TRM’s “Terrorism Financing Deep Dive,” ISIS and its affiliates are increasingly turning to cryptocurrency to raise, move, and store funds beyond the reach of traditional financial systems. Over the past year, TRM has observed a marked increase in the volume and complexity of crypto-enabled terror finance. ISIS supporters continue to exploit mainstream platforms for fundraising, often masking transactions to evade detection. Notably, ISKP, the group’s Khorasan Province affiliate, has been linked to attacks, foiled plots, and arrests across Europe and Asia, with cryptocurrency playing a central role in multiple cases.

TRM data reveals the extent of this threat. In March 2024, ISKP conducted a deadly attack in Moscow that was partially funded with crypto. In June, a German national who had sent USD 1,700 in crypto to ISKP was arrested after applying for a security job at a major European soccer tournament, an event ISKP had urged followers to target. 

That same month, Turkish authorities arrested ISIS financiers and seized cryptocurrency wallets. And in December, a UK-based individual was sentenced to prison for sending over £16,000 in crypto to ISKP. TRM has identified hundreds of transactions tied to ISKP, ranging from USD 100 to USD 15,000, moving through regulated exchanges, high-risk platforms, and peer-to-peer traders, some of whom may be knowingly facilitating terrorist finance. Additionally, TRM has traced on-chain links between ISKP-affiliated wallets and Syria-based fundraising campaigns supporting ISIS members and their families held in detention camps. 

This conviction marks a significant milestone for Sweden and a broader shift in how law enforcement agencies around the world are leveraging blockchain intelligence to combat terrorism. By applying new legal authorities and advanced investigative tools, Swedish authorities successfully disrupted a financial pipeline to ISIS, demonstrating that even small-dollar, digital contributions can have serious legal consequences. As terrorist groups continue to evolve their methods, cases like this underscore the critical role of proactive enforcement, international collaboration, and cutting-edge technology in safeguarding national and global security.