Mohammed Azharuddin Chhipa, 35, from Springfield, Virginia, was convicted on December 13, 2024, for offering materials help to the Islamic State of Iraq and al-Sham (ISIS), which has been designated a terrorist group by the United Nations and others.
The fees 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, america Division of Justice (DOJ) revealed that Chhipa’s efforts included financing the escape of ladies from jail camps and supporting ISIS fighters. He additionally collected funds by means of varied 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 major confederate was a British-born ISIS member in Syria who performed a key function within the fund-raising efforts, together with for terrorist actions.
Over the course of the scheme, Chhipa despatched over $185,000 in cryptocurrency to help ISIS operations. The jury convicted him on one cost of conspiracy to offer materials help to a overseas terrorist group and 4 counts of offering such help.
Chhipa now faces a most sentence of 20 years in jail for every rely. A sentencing listening to is about 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 concerns.
Crypto’s Position in Terrorist Fundraising
Many consultants have flagged that ISIS has been utilizing crypto for fundraising. TRM Labs’ report from final August revealed that pro-ISIS networks in international locations akin to Tajikistan, Indonesia, Pakistan, and Afghanistan have raised vital funds utilizing crypto belongings like Tether (USDT) on the Tron community.
One such marketing campaign, which operated for over a yr, raised practically $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.
Nevertheless, it is usually necessary to notice that business consultants akin 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 characterize a minor fraction of illicit crypto actions.
Chainalysis stresses that terrorism financing stays a small a part of general illicit crypto transactions, with conventional strategies akin 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.
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