In a surprising turn of events, a Virginia man has been charged with allegations of proving funding in cryptocurrency to terrorist organization ISIS.
According to official reports from December 17th, Mohammed Azharuddin Chhipa, of Springfield, Virginia, was found guilty by a jury of charges involving his attempts to give material support to the foreign terrorist group known as the Islamic State of Iraq and al-Sham (ISIS).
The case comes as one of the many incidents of funding being provided to criminals or terrorist organizations in the form of crypto. This trend has seen a rise globally, making the overall image of crypto markets tarnish.
What Was The Modus Operandi?
Court documents and evidence presented during the trial show that Chhipa gathered and transferred funds to female ISIS members in Syria between at least October 2019 and October 2022 in order to support ISIS fighters and finance the escape of female ISIS members from prison camps, among other ways.
Chhipa would use a variety of social media platforms to raise money online. He would travel hundreds of miles to manually collect funds after receiving electronic transfers.
After that, he would turn the cash into cryptocurrency and send it to Turkey, where it would be smuggled to Syrian ISIS members.
International Support For The Operation
His main accomplice was a British-born ISIS member living in Syria who helped raise money for ISIS fighters, terrorist attacks, and prison breaks. The defendant sent out more than $185,000 in cryptocurrency during the conspiracy.
The jury convicted Chhipa of one count of conspiracy to provide material assistance or funds to a foreign terrorist organization while also finding him guilty of four counts of giving and attempting to give such resources or support. Each count against Chhipa carries a maximum penalty of 20 years in prison. There will be a sentencing hearing on May 5, 2025.
Crypto Funding For Illegal Activities Rises Globally
Illegal funding for terrorist groups using cryptocurrencies has seen a rise globally. The most recent example of this comes in the ongoing geo-political tension going on in Israel and Palestine.
The role of cryptocurrencies in funding terrorists and militant groups came under renewed scrutiny following a deadly attack in Israel by the Palestinian militant group Hamas.
Crypto accounts that Israel claims are connected to Hamas have been seized. Lawmakers in the United States have called on the government to take action against Hamas and its affiliates’ use of cryptocurrencies.
Mostly, violent militant groups and organizations classified as terrorist organizations use cryptocurrencies as one of their methods of obtaining and spending money.