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

Mohammed Azharuddin Chhipa, 35, from Springfield, Virginia, was convicted on December 13, 2024, for offering materials assist 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, throughout which he raised funds to help feminine ISIS members in Syria.

Responsible of Financing ISIS Operations

In an official press release, the USA 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 funds via numerous on-line social media accounts, receiving digital transfers, and bodily gathering cash by touring lengthy distances.

The 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 main confederate was a British-born ISIS member in Syria who performed a key position within the fund-raising efforts, together with for terrorist actions.

Over the course of the scheme, Chhipa despatched over $185,000 in cryptocurrency to assist ISIS operations. The jury convicted him on one cost of conspiracy to offer materials assist to a overseas terrorist group and 4 counts of offering such assist.

Chhipa now faces a most sentence of 20 years in jail for every depend. A sentencing listening to is ready for Might 5, 2025, the place a federal district court docket choose will decide the sentence based mostly on US Sentencing Pointers and different authorized issues.

Crypto’s Function in Terrorist Fundraising

Many specialists have flagged that ISIS has been utilizing crypto for fundraising. TRM Labs’ report from final August revealed that pro-ISIS networks in nations similar to Tajikistan, Indonesia, Pakistan, and Afghanistan have raised important funds utilizing crypto belongings like Tether (USDT) on the Tron community.

One such marketing campaign, which operated for over a yr, raised almost $2 million in USDT for ISIS associates in Afghanistan. TRM Labs additionally traced over $517,000 in 2022 despatched from an Indonesia-based platform to pro-ISIS accounts.

Nonetheless, additionally it is essential to notice that business specialists similar to Chainalysis have beforehand clarified misconceptions relating to the usage of cryptocurrency in terrorism financing. Whereas entities like Hamas and Hezbollah use crypto for fundraising, these transactions signify a minor fraction of illicit crypto actions.

Chainalysis stresses that terrorism financing stays a small a part of total illicit crypto transactions, with conventional strategies similar to monetary establishments and shell firms being the first sources of funding. The agency additionally identified that blockchain transparency makes it tough for terrorists to cover transactions, as seen when Hamas ceased accepting Bitcoin donations.