A 16-year-old from East London, accused of raising crypto and offering cyber expertise to Al Qaeda, has been granted bail with restricted digital access, allowing him to use his PlayStation offline only.

Prosecutors allege the teen, who cannot be named for legal reasons, attempted to raise approximately $1,300 in crypto for extremist groups, including Al Qaeda and the Pakistani Taliban, according to a Wednesday report by The Standard.

Appearing at Westminster Magistrates’ Court, the teenager pleaded not guilty to five charges, including fundraising for terrorism, providing training, and possessing documents of a nature useful for terror-related purposes.

Under his bail conditions, the boy must adhere to a night-time curfew, avoid social media, and restrict laptop use to educational purposes only. 

However, he retains limited use of his PlayStation console, with conditions prohibiting online multiplayer or any interactive gaming platforms.

The case against the teen is set to proceed to the Old Bailey, the UK’s central criminal court, for a hearing on November 2.

Although crypto use by terrorist organizations constitutes a relatively small portion of illicit transactions within the industry, it remains a significant concern for regulators globally.

Criminal activity involving crypto spans from money laundering and ransomware to fraud, yet transactions linked to terrorism make up a fraction of these activities, according to blockchain analytics firm Chainalysis.

Even still, the transparent nature of blockchain technology enables law enforcement to track and trace illicit activities more effectively than with traditional financial channels, as every transaction is recorded on a public ledger. 

That transparency helps authorities monitor the flow of funds and identify suspicious patterns, making it easier to disrupt criminal networks leveraging digital assets, according to a former CIA director.

Last year, Israel seized around 40 cryptocurrency wallets tied to the Quds Force of Iran’s Islamic Revolutionary Guard Corps (IRGC) and Hezbollah, the Lebanon-based militant organization.

It marked the “first incident of this magnitude” carried out by Israel at the time.

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