Mohammed Azharuddin Chhipa, a 35-year-old resident of Springfield, Virginia, was recently convicted of 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 assist female ISIS members in Syria. He was found guilty of financing the escape of women from prison camps and supporting ISIS fighters by collecting funds through social media accounts, electronic transfers, and physical means.
According to an official press release from the United States Department of Justice (DOJ), Chhipa converted the collected funds into cryptocurrency, which was then sent to Turkey and smuggled into Syria for use by ISIS. His main partner in these activities was a British-born ISIS member in Syria who played a crucial role in fundraising efforts for terrorist activities. In total, Chhipa sent over $185,000 in cryptocurrency to support ISIS operations. He was convicted 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.
The sentencing hearing for Chhipa is scheduled for May 5, 2025, where a federal district court judge will decide the appropriate sentence based on US Sentencing Guidelines and other legal considerations. The case highlights the role of cryptocurrency in terrorist fundraising activities, with many experts pointing out that ISIS and other groups have been using crypto assets for financial support. Reports by TRM Labs have shown how 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.
Despite the use of cryptocurrency by terrorist organizations for fundraising purposes, industry experts like Chainalysis have clarified that this remains a relatively small part of the overall illicit crypto transactions. While groups like Hamas and Hezbollah have used crypto for funding, traditional methods such as financial institutions and shell companies continue to be the primary sources of funding for terrorist activities. Chainalysis emphasizes that the transparency of blockchain technology makes it challenging for terrorists to conceal their transactions, as witnessed when Hamas stopped accepting Bitcoin donations. The role of cryptocurrencies in terrorism financing continues to be a topic of concern for authorities worldwide.
