A federal jury has convicted Mohammed Azharuddin Chhipa, a 35-year-old Virginia resident, for providing substantial financial support to the Islamic State of Iraq and al-Sham (ISIS) through cryptocurrency transactions. The United States Department of Justice (DOJ) revealed that between October 2019 and October 2022, Chhipa sent $185,000 worth of cryptocurrencies to ISIS operatives in Syria.

Court records confirm that Chhipa’s donations facilitated various ISIS operations, including prison escapes for female ISIS members and direct support for fighters. Chhipa raised the funds through a combination of social media campaigns, bank transfers, and cash collections. He then converted these funds into cryptocurrency and transferred them to intermediaries in Turkey, who smuggled the money into Syria.

A British-born ISIS operative in Syria, identified as Chhipa’s co-conspirator, played a key role in coordinating these financial activities, which included funding prison breaks and potential terrorist attacks.

Chhipa was convicted on five counts, including conspiracy and providing material support to a designated terrorist organization. If sentenced to the maximum penalty for all charges, Chhipa could face up to 100 years in prison. However, federal sentences typically fall below the maximum limit. His sentencing hearing is scheduled for May 2025.

This case comes amid a broader crackdown on illicit crypto activities. The DOJ also charged Maximiliano Pilipis, the operator of crypto exchange AurumXchange, with money laundering linked to the infamous Silk Road darknet marketplace. AurumXchange reportedly operated without proper licensing and violated multiple financial regulations.

These cases underscore the growing use of cryptocurrency in illegal activities and the need for robust global enforcement against misuse of digital assets.