Mohammed Azharuddin Chhipa, a 35-year-old man from Springfield, Virginia, was convicted by a federal jury of making cryptocurrency donations to a terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).
According to the United States Department of Justice (DOJ), Chhipa sent $185,000 worth of cryptocurrencies to ISIS members in Syria between October 2019 and October 2022.
Court records and evidence confirmed that Chhipa sent crypto “to benefit ISIS in various ways, including by financing the escape of female ISIS members from prison camps and supporting ISIS fighters.”
Source: Eastern District of Virginia - Department of Justice
Chhipa raised funds through social media accounts, electronic bank transfers and in-person cash collections. The money would then be converted into crypto and sent to Turkey, where it could be smuggled to ISIS members in Syria, according to the DOJ report.
Supported by a British-born ISIS member
A British-born ISIS member residing in Syria was identified as Chhipa’s primary co-conspirator, who also raised funds for prison escapes and terrorist attacks.
“Over the course of the conspiracy, the defendant sent out over $185,000 in of cryptocurrency.”
Chhipa was convicted on five counts: one count of conspiracy to provide material support or resources to a designated foreign terrorist organization and four counts of providing and attempting to provide material support or resources to a designated foreign terrorist organization.
Maximum prison sentence of 100 years for funding ISIS
If consecutively sentenced to the maximum on all counts, Chhipa could face up to 100 years in prison, though actual sentences for federal crimes are typically less than the maximum penalties.
He will be sentenced at a hearing on May 5, 2025. A judge will determine the length of his prison term, considering US sentencing guidelines and statutory factors.
Related: SEC, FBI, DOJ coordinate takedown of fraudulent crypto firms
The DOJ recently charged Maximiliano Pilipis, operator of crypto exchange AurumXchange, with money laundering of funds linked to the darknet marketplace, Silk Road.
According to an Oct. 28 statement, his exchange allegedly processed numerous transactions from accounts held on the Silk Road.
Additionally, the DOJ alleged that AurumXchange operated without a license from 2009 until 2013 and violated Know Your Customer, Anti-Money Laundering and Counter-Terrorist Financing regulations.
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