ISIS Crypto Fundraiser Mohammed Chhipa Faces 20 Years After Conviction in Virginia

Mohammed Azharuddin Chhipa, 35, of Springfield, Virginia, was convicted on December 13, 2024, of offering materials help to the Islamic State of Iraq and al-Sham (ISIS), which has been designated a terrorist group by the United Nations and others.

The costs stemmed from his actions between October 2019 and October 2022, elevating cash to assist feminine ISIS members in Syria.

Responsible of financing ISIS operations

In an official press launch, the US Division of Justice (DOJ) revealed that Chhipa’s efforts included financing the escape of girls from jail camps and supporting ISIS fighters. He additionally collected cash by means of varied on-line social media accounts, acquired wire transfers, and picked up bodily cash by touring lengthy distances.

Authorities revealed that Chhipa then transformed the cash into cryptocurrency, which was despatched to Turkey and smuggled into Syria to be used by ISIS. Chhipa’s most important confederate was a British-born ISIS member in Syria who performed a key position in fundraising, together with for terrorist actions.

Over the course of the scheme, Chhipa despatched greater than $185,000 in cryptocurrency to help ISIS operations. The jury convicted him on one rely of conspiracy to supply materials help to a international terrorist group and on 4 counts of offering such help.

Chhipa now faces a most jail sentence of 20 years per cost. A sentencing listening to is scheduled for Could 5, 2025, the place a federal district court docket decide will decide the sentence based mostly on the U.S. Sentencing Tips and different authorized concerns.

Crypto’s Position in Fundraising for Terrorists

Many specialists have indicated that ISIS is utilizing crypto for fundraising. TRM Labs’ report final August discovered that pro-ISIS networks in international locations similar to Tajikistan, Indonesia, Pakistan and Afghanistan have raised vital quantities of cash utilizing crypto belongings similar to Tether (USDT) on the Tron community.

One such marketing campaign, which lasted over a 12 months, raised practically $2 million in USDT for ISIS associates in Afghanistan. TRM Labs additionally tracked greater than $517,000 despatched from an Indonesia-based platform to pro-ISIS accounts in 2022.

Nonetheless, it’s also essential to notice that trade specialists similar to Chainalysis have beforehand cleared up misconceptions about the usage of cryptocurrency in terrorist financing. Whereas entities like Hamas and Hezbollah use crypto for fundraising, these transactions symbolize a small portion of unlawful crypto exercise.

Chainalysis emphasizes that terrorist financing stays a small a part of general illicit crypto transactions, with conventional strategies similar to monetary establishments and shell firms being the primary sources of funding. The corporate additionally identified that blockchain’s transparency makes it troublesome for terrorists to cover transactions, as seen when Hamas stopped accepting Bitcoin donations.