Virginia Man Found Guilty in Cryptocurrency Scheme Backing ISIS

Mohammed Azharuddin Chhipa has been convicted for funding ISIS through a web of cryptocurrency transactions.

At a Glance

Chhipa sent $185,000 in crypto to ISIS over three years.
He was convicted of conspiracy and providing support to a terrorist organization.
The funds aided ISIS members, facilitating operations in Syria.
Chhipa faces a maximum of 20 years prison per count.
Chhipa’s defense claimed entrapment by the FBI.

Conviction Details and Impact

Mohammed Azharuddin Chhipa, based in Springfield, Virginia, has been found guilty for his involvement in financing ISIS through cryptocurrency. He amassed $185,000 over a period of three years, using sophisticated methods like social media fundraising, electronic bank transfers, and in-person collections. This money was converted into cryptocurrency, then routed through Turkey into Syria. Chhipa stands convicted on one count of conspiracy and four counts of providing material support to a foreign terrorist organization.

During the FBI raid on his residence, materials potentially used for explosives were discovered confirming details of the crypto financing scheme. Chhipa’s primary associate was a British-born ISIS member similarly involved in funding terrorism. This partnership posed a real threat, aiding ISIS fighters and facilitating the escape of female members from Syrian prisons.

Virginia Man Convicted for Crypto Financing Scheme to ISIShttps://t.co/l4w28bNbaE

— Andrew Thompson (@ImposeCost) December 17, 2024

Legal Struggles and Defense Perspective

Presenting the defense, attorney Zachary Deubler argued that Chhipa, portrayed as “a lonely, sad, inflated man,” was manipulated by governmental operations into the alleged conspiracy. The defense has claimed FBI entrapment played a significant role in Chhipa’s actions. Despite these claims, prosecution highlighted his significant financial support to ISIS, underscoring the seriousness of his activities.

The impending sentencing scheduled for May 5, 2025, presents Chhipa with a potential maximum penalty of 20 years in prison for each count. This case showcases the ongoing efforts of terrorist organizations to use complex financial transactions to fund operations. Still, government agencies counteract these attempts with blockchain analysis tools for tracing such transactions.

Larger Context of Terror Financing

The conviction of Chhipa underscores the evolving nature of terrorism financing, particularly the incorporation of digital currencies. However, evidence indicates that traditional methods dominate. According to the U.N., “the majority of funds used for terrorism financing purposes continue to be raised and moved through cash, hawala-like services and traditional financial institutions.”

Modern blockchain technology provides advantages for tracking transactions, being “traceable and immutable,” aiding authorities in disrupting these financial networks. As this field develops, ongoing vigilance and cooperation between international law enforcement will be crucial for countering and thwarting attempts by terrorist organizations to exploit new technologies for funding.