A Virginia man faces up to 100 years in prison for transferring $185,000 in cryptocurrency to ISIS between 2019 and 2022. The case raises concerns about the use of cryptocurrencies 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 US Department of Justice ( DOJ ) said that Chhipa sent a total of $185,000 in cryptocurrency to ISIS members in Syria between October 2019 and October 2022. This case once again sounded the alarm about the risk of using cryptocurrencies for illegal activities, especially terrorist financing.
Evidence presented in court showed that Chhipa used cryptocurrency to support ISIS in a variety of ways, including funding female ISIS members to escape from detention camps and supporting the activities of ISIS fighters.
Chhipa collected the money through various channels, including social media accounts, electronic bank transfers, and cash. The money was then converted into cryptocurrency and sent to Türkiye before being smuggled into Syria for ISIS members.
A complex financial show
According to the DOJ, Chhipa’s key co-conspirator, a British citizen currently living in Syria and a member of ISIS, was also involved in the fundraising. The money was used not only to finance the escapes but also allegedly to carry out terrorist attacks. The use of cryptocurrencies, with their anonymity and ease of cross-border transactions, enabled Chhipa and his co-conspirators to conceal their illicit funding activities.
Chhipa faces five charges, including one count of conspiracy to provide support or resources to a foreign terrorist organization and four counts of providing support or resources to a foreign terrorist organization. If convicted on all charges, Chhipa could face a maximum sentence of 100 years in prison. Sentencing is scheduled for May 5, 2025. The final sentence will be determined by a judge based on U.S. sentencing guidelines and other legal factors.
In another development related to cryptocurrencies and illegal activity, the DOJ recently indicted Maximiliano Pilipis, the operator of the cryptocurrency exchange AurumXchange, on money laundering charges related to the online black market Silk Road, which operated from 2009 to 2013. AurumXchange allegedly processed numerous transactions from accounts associated with Silk Road, in violation of Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter-Terrorism Financing (CTF) regulations.
