A federal jury convicted a Virginia man for using a cryptocurrency scheme to funnel money to the Islamic State of Iraq and al-Sham (ISIS) on Friday, according to a Department of Justice (DOJ) press release.
Mohammed Azharuddin Chhipa, 35, had been charged with providing material support to the terrorist group, the Justice Department said.
According to court records and evidence presented at trial, from at least October 2019 through October 2022, Chhipa collected and sent money to female ISIS members in Syria to benefit ISIS in various ways, including by financing the escape of female ISIS members from prison camps and supporting ISIS fighters. Chhipa would raise funds online on various social media accounts. He would receive electronic transfers of funds and travel hundreds of miles to collect funds by hand. He would then convert the money to cryptocurrency and send it to Turkey, where it was smuggled to ISIS members in Syria.
His primary co-conspirator was a British-born ISIS member residing in Syria who was involved in raising funds for prison escapes, terrorist attacks, and ISIS fighters. Over the course of the conspiracy, the defendant sent out over $185,000 in of cryptocurrency.
The jury found Chhipa guilty of 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 a designated foreign terrorist organization. Chhipa faces a maximum penalty of 20 years in prison per count. A sentencing hearing has been scheduled for May 5, 2025. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The conviction comes after the FBI raided Chhipa’s home in Fairfax and found material used to build explosives, according to Fox 5 DC. Undercover agents had communicated with Chhipa about the scheme. The conversations included plans to fund ISIS and discussions about suicide bombings.
Chhipa’s defense team claimed the FBI entrapped and manipulated him into carrying on the plot.
Defense attorneys argue Chhipa was entrapped by federal agents and portrayed him as a "lonely, sad" man manipulated by government sting operations.
"He was a lonely, sad, inflated man who the government tried to set up," said defense attorney Zachary Deubler, claiming the FBI used a fake bride and marriage broker to gain Chhipa’s trust.
Still, the prosecutors honed in on Chhipa’s massive financial contributions to the terrorist group.
Terrorist groups like ISIS and al-Qaeda have leveraged cryptocurrency for their fundraising efforts for years. Much of the funding generated by these scams goes to support groups like Hay'at Tahrir al-Sham (HTS), the al-Qaeda-linked organization responsible for overthrowing former Syrian President Bashar al-Assad, according to the United Nations.
An interesting read on cryptocurrency use by HTS in Syria and the use of crypto to send money to al Hol and al Roj camps where many women associated with ISIL are still detained.https://t.co/VhOCxvA9Sf
— JMDavis (@JessMarinDavis) December 13, 2024
While the use of cryptocurrency among terrorist entities has been growing, “the majority of funds used for terrorism financing purposes continue to be raised and moved through cash, hawala-like services and traditional financial institutions,” the U.N. noted.
Still, blockchain analytics makes these transactions “traceable and immutable,” which enables government agencies track the movement of the funds.
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