Mohammed Azharuddin Chhipa, 35, from Springfield, Virginia, was convicted on December 13, 2024, for providing material support to the Islamic State of Iraq and al-Sham (ISIS), which has been designated a terrorist organization by the United Nations and others.
The charges stemmed from his actions between October 2019 and October 2022, during which he raised funds to assist female ISIS members in Syria.
Guilty of Financing ISIS Operations
In an official press release, the United States Department of Justice (DOJ) revealed that Chhipa’s efforts included financing the escape of women from prison camps and supporting ISIS fighters. He also collected funds through various online social media accounts, receiving electronic transfers, and physically gathering money by traveling long distances.
The authorities revealed that Chhipa then converted the money into cryptocurrency, which was sent to Turkey and smuggled into Syria for use by ISIS. Chhipa’s primary accomplice was a British-born ISIS member in Syria who played a key role in the fund-raising efforts, including for terrorist activities.
Over the course of the scheme, Chhipa sent over $185,000 in cryptocurrency to support ISIS operations. The jury convicted him on one charge of conspiracy to provide material support to a foreign terrorist group and four counts of providing such support.
Chhipa now faces a maximum sentence of 20 years in prison for each count. A sentencing hearing is set for May 5, 2025, where a federal district court judge will determine the sentence based on US Sentencing Guidelines and other legal considerations.
Crypto’s Role in Terrorist Fundraising
Many experts have flagged that ISIS has been using crypto for fundraising. TRM Labs’ report from last August revealed that pro-ISIS networks in countries such as Tajikistan, Indonesia, Pakistan, and Afghanistan have raised significant funds using crypto assets like Tether (USDT) on the Tron network.
One such campaign, which operated for over a year, raised nearly $2 million in USDT for ISIS affiliates in Afghanistan. TRM Labs also traced over $517,000 in 2022 sent from an Indonesia-based platform to pro-ISIS accounts.
However, it is also important to note that industry experts such as Chainalysis have previously clarified misconceptions regarding the use of cryptocurrency in terrorism financing. While entities like Hamas and Hezbollah use crypto for fundraising, these transactions represent a minor fraction of illicit crypto activities.
Chainalysis stresses that terrorism financing remains a small part of overall illicit crypto transactions, with traditional methods such as financial institutions and shell companies being the primary sources of funding. The firm also pointed out that blockchain transparency makes it difficult for terrorists to hide transactions, as seen when Hamas ceased accepting Bitcoin donations.
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