According to Cointelegraph, Mohammed Azharuddin Chhipa, a 35-year-old resident of Springfield, Virginia, has been charged with criminal offenses for allegedly providing financial support to the Islamic State of Iraq and al-Sham (ISIS) through cryptocurrency donations. The United States Department of Justice (DOJ) revealed that Chhipa transferred $185,000 worth of cryptocurrencies to ISIS members in Syria over a three-year period from October 2019 to October 2022.
Court documents and evidence indicate that Chhipa's cryptocurrency donations were directed to female ISIS members, aiding the organization by financing prison escapes and supporting ISIS fighters. The funds were reportedly raised through social media, electronic bank transfers, and in-person cash collections. These illicit funds were then converted into cryptocurrency, sent to Turkey, and eventually smuggled into Syria to reach ISIS members, as detailed in the DOJ report.
Chhipa's primary co-conspirator was identified as a British-born ISIS member residing in Syria, who was also involved in raising funds for prison escapes, terrorist activities, and supporting ISIS fighters. Throughout the conspiracy, Chhipa allegedly sent over $185,000 in cryptocurrency to support these efforts.
Chhipa faces five charges, including 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 such an organization. If sentenced consecutively to the maximum on all counts, he could face up to 100 years in prison. However, the actual sentence will be determined by a judge, taking into account the US Sentencing Guidelines and statutory factors during a hearing scheduled for May 5, 2025.
In a related case, the DOJ has charged Maximiliano Pilipis, the operator of the cryptocurrency exchange AurumXchange, with money laundering linked to the darknet marketplace Silk Road. According to an October 28 statement, Pilipis's exchange allegedly processed numerous transactions from accounts associated with Silk Road. The DOJ also claimed that AurumXchange operated without a license from 2009 to 2013, violating Know Your Customer, Anti-Money Laundering, and Counter-Terrorist Financing regulations.
