A man in Virginia faces 100 years in prison for transferring $185,000 in cryptocurrency to ISIS from 2019 to 2022. The case has raised concerns about the use of cryptocurrency to finance terrorism.
On December 13, a federal court in Springfield, Virginia, convicted Mohammed Azharuddin Chhipa, 35, of transferring cryptocurrency to the terrorist organization Islamic State of Iraq and al-Sham (ISIS).
The indictment from the U.S. Department of Justice (DOJ) states that Chhipa sent a total of $185,000 in cryptocurrency to ISIS members in Syria over the period from October 2019 to October 2022. This case once again raises alarm bells about the risks of using cryptocurrency for illegal activities, particularly terrorism financing.
Evidence presented in court shows that Chhipa used cryptocurrency to support ISIS in various forms, including funding female ISIS members to escape from detention camps and supporting the activities of ISIS fighters.
Chhipa collected money through various channels, including social media accounts, electronic bank transfers, and cash. This money was then converted into cryptocurrency and sent to Turkey before being smuggled into Syria for ISIS members.
Source: Eastern District of Virginia – Department of Justice Complex Financial Presentation
According to the DOJ, Chhipa's key accomplice is a British citizen currently living in Syria and a member of ISIS, who also participated in this fundraising effort. The funds were used not only for escape attempts but also allegedly aimed at carrying out terrorist attacks. The use of cryptocurrency, with its anonymous nature and ease of cross-border transactions, facilitated Chhipa and his accomplices in concealing these illegal funding activities.
Chhipa faces 5 charges, including 1 count of conspiracy to provide material support or resources to a foreign terrorist organization and 4 counts of providing material support or resources to a foreign terrorist organization. If convicted on all charges, Chhipa could face a maximum sentence of up to 100 years in prison. Sentencing is scheduled for May 5, 2025. The final sentence will be determined by the judge based on U.S. sentencing guidelines and other legal factors.
In a separate development related to cryptocurrency and illegal activities, the DOJ recently indicted Maximiliano Pilipis, the operator of the cryptocurrency exchange AurumXchange, on charges of money laundering related to the online black market Silk Road, which operated from 2009 to 2013. AurumXchange is alleged to have processed numerous transactions from accounts linked to Silk Road, violating Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorism Financing (CTF) regulations.