Mohammed Azharuddin Chhipa Convicted for Financing ISIS Operations
Mohammed Azharuddin Chhipa, a 35-year-old resident of Springfield, Virginia, was recently convicted on charges of providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated terrorist organization. The conviction, handed down on December 13, 2024, stemmed from Chhipa’s activities between October 2019 and October 2022, where he raised funds to aid female ISIS members in Syria.
Guilty of Financing ISIS Operations
The United States Department of Justice (DOJ) disclosed that Chhipa’s efforts included financing the escape of women from prison camps and supporting ISIS fighters. He utilized various online social media platforms to solicit funds, received electronic transfers, and even traveled long distances to collect money. Chhipa then converted these funds into cryptocurrency, which was sent to Turkey and smuggled into Syria for ISIS’s use.
Chhipa’s primary accomplice, a British-born ISIS member in Syria, was instrumental in the fundraising efforts for terrorist activities. In total, Chhipa sent over $185,000 in cryptocurrency to support ISIS operations, leading to his conviction on one count 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. A sentencing hearing is scheduled for May 5, 2025, where a federal district court judge will determine the appropriate punishment based on US Sentencing Guidelines and other legal considerations.
Crypto’s Role in Terrorist Fundraising
Experts have raised concerns about ISIS’s use of cryptocurrency for fundraising purposes. Reports from TRM Labs have highlighted pro-ISIS networks in countries like Tajikistan, Indonesia, Pakistan, and Afghanistan leveraging crypto assets like Tether (USDT) on the Tron network to raise substantial funds.
One notable campaign, operating for over a year, raised close to $2 million in USDT for ISIS affiliates in Afghanistan. TRM Labs also identified over $517,000 sent from an Indonesia-based platform to pro-ISIS accounts in 2022.
Despite these alarming findings, industry experts like Chainalysis have clarified that terrorism financing through cryptocurrency remains a small fraction of overall illicit activities. While groups like Hamas and Hezbollah utilize crypto for fundraising, traditional methods such as financial institutions and shell companies remain the primary sources of funding for terrorist organizations.
Chainalysis emphasizes that blockchain transparency makes it challenging for terrorists to conceal transactions, as evidenced by Hamas discontinuing Bitcoin donations due to increased scrutiny. This transparency underscores the importance of continued vigilance and regulation to mitigate the risks associated with illicit financing through digital assets.