Mohammed Azharuddin Chhipa, a 35-year-old resident of Springfield, Virginia, was convicted on December 13, 2024, for providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated terrorist organization. The charges against Chhipa were related to his activities between October 2019 and October 2022, during which he raised funds to aid female ISIS members in Syria.
The United States Department of Justice (DOJ) revealed in an official press release that Chhipa’s efforts included financing the escape of women from prison camps and supporting ISIS fighters. He collected funds through various online social media accounts, received electronic transfers, and physically gathered money by traveling long distances. Chhipa then converted the money into cryptocurrency, which was sent to Turkey and smuggled into Syria for use by ISIS.
Chhipa’s primary accomplice in these activities was a British-born ISIS member in Syria who played a crucial role in the fund-raising efforts for terrorist activities. Throughout the scheme, Chhipa sent over $185,000 in cryptocurrency to support ISIS operations. He was convicted by a jury on one charge of conspiracy to provide material support to a foreign terrorist group and four counts of providing such support. Chhipa now faces a maximum sentence of 20 years in prison for each count, with a sentencing hearing scheduled for May 5, 2025.
Experts have pointed out that ISIS has been utilizing cryptocurrency for fundraising purposes. Reports from TRM Labs have highlighted that pro-ISIS networks in countries like Tajikistan, Indonesia, Pakistan, and Afghanistan have raised significant funds using crypto assets such as Tether (USDT) on the Tron network. One campaign, operating for over a year, raised nearly $2 million in USDT for ISIS affiliates in Afghanistan, while over $517,000 was traced from an Indonesia-based platform to pro-ISIS accounts in 2022.
However, it is essential to recognize that terrorism financing through cryptocurrency remains a small portion of overall illicit crypto transactions. Companies like Chainalysis have clarified that while entities like Hamas and Hezbollah do use crypto for fundraising, these transactions represent only a minor fraction of illicit crypto activities. Chainalysis emphasizes that traditional methods such as financial institutions and shell companies remain the primary sources of funding for terrorist activities, and blockchain transparency makes it challenging for terrorists to conceal transactions. An example of this was seen when Hamas stopped accepting Bitcoin donations.
In conclusion, Mohammed Azharuddin Chhipa’s conviction for providing material support to ISIS sheds light on the dark underbelly of terrorist financing through cryptocurrency. While some terror groups have utilized crypto assets for fundraising, experts emphasize that traditional methods still play a significant role in funding terrorism. The case serves as a reminder of the ongoing efforts to combat illicit financial activities and the importance of maintaining transparency in financial transactions to prevent misuse by terrorist organizations.
