On December 13, a federal jury in the US convicted Springfield resident Mohammed Azharuddin Chhipa on multiple counts related to his involvement in funding a terrorist organization, ISIS, through cryptocurrency.
The Case of Mohammed Azharuddin Chhipa
According to the U.S. attorney's press release, Chhipa operated a multi-year scheme from October 2019 to 2022, directing funds to female ISIS supporters in Syria. These funds facilitated various terrorist activities, including prison breaks and funding ISIS fighters, with prosecutors highlighting cryptocurrency's role as central to Chhipa's method of concealing the origins and recipients of the transferred funds.
The ISIS Funding Scheme
Chhipa's main contact was a British-born operative active in Syria, who funded breakouts and terrorist attacks and supported ISIS fighters directly. Over the course of the conspiracy, Chhipa wired more than $185,000 worth of cryptocurrency, collecting and converting cash contributions to crypto, then sending them to intermediaries in Turkey.
Legal Proceedings and Consequences
Chhipa was convicted of conspiracy to provide financial support to a foreign terrorist organization and four counts of providing or attempting to provide such support. He faces up to 20 years in federal prison on each count, with sentencing scheduled for May 5, 2025. This case, brought by the U.S. Attorney’s Office for the Eastern District of Virginia and the Justice Department’s National Security Division, highlights the issue of illicit cryptocurrency transactions.
Chhipa's case underscores the growing challenge in the cryptocurrency industry regarding illegal transactions, with volumes reaching a record $20.1 billion in 2022, according to Chainalysis.
